Gold kept trading at a steep discount
in India this week, as price volatility dampened demand, while
premiums eased in China.
Dealers in India quoted discounts of up to $78
an ounce over official domestic prices this week, inclusive of
15% import and 3% sales levies, down from the prior week’s
record discounts of up to $207 an ounce.
“Retail buyers are a bit confused by the recent price swings
after the government raised import duty earlier this month. Most
of them are just waiting for prices to settle down,” said a
Kolkata-based jeweller.
The South Asian country earlier this month raised import
tariffs on gold and silver to 15% from 6% as part of efforts to
reduce overseas purchases of the metals and ease pressure on
foreign exchange reserves from higher oil prices.
Jewellers are reluctant to build stocks as the wedding
season draws to a close and uncertainty persists over retail
demand, said a Mumbai-based bullion dealer with a private bank.
In top consumer China, bullion traded at premiums
price, compared with the previous week’s premiums of $15 to $20.
“Fed rate-hike anxiety, rising bond yields, and dollar
strength continue to weigh on gold in China,” said Bernard Sin,
regional director of Greater China at MKS PAMP.
A stronger dollar makes greenback-priced bullion expensive
for other currency holders, while elevated bond yields increase
the opportunity cost of holding the non-yielding metal.
“Near-term, physical demand remains caught between
conflict-driven safe-haven demand and policy-driven headwinds,”
he said.
Spot gold prices fell to a near two-month low on
Wednesday, weighed down by higher Treasury yields and a stronger
dollar.
Published on May 22, 2026
