Gold discounts in India widened to their deepest in 10 months as a rebound in prices curbed demand,
while China demand picked up as the bullion’s safe-haven appeal
shined through via rising premiums after markets returned from
the Lunar New Year holiday.
Indian bullion dealers offered a discount of
up to $65 per ounce over official domestic gold prices this week
– inclusive of 6% import and 3% sales levies, up from last
week’s discount of up to $18.
“Retail buyers just aren’t ready to buy at these prices. For
a lot of them, the current levels are simply too expensive to
afford,” said Ashok Jain, proprietor of Mumbai-based gold
wholesaler Chenaji Narsinghji.
Domestic gold prices were trading around ₹160,000
per 10 grams on Friday, after falling to as low as
₹133,687 earlier this month.
Jewellery demand has fallen sharply and is failing to draw
support even from the ongoing wedding season, said a
Mumbai-based bullion dealer with a private bank.
Weddings are a major driver of gold purchases in India, with
jewellery being a common gift from families and guests.
China markets came back from the Lunar New Year holiday on
Tuesday with higher demand. Gold traded at premiums of $12-$13
an ounce above the global benchmark spot price
this week, up from last week’s discount of $8 to premiums of up
to $10.
“After the Chinese market returned this Tuesday, the
premiums were still very steady (on the) open, a few days later
and now the physical demand has picked up significantly,” said
Peter Fung, head of dealing at Wing Fung Precious Metals.
“People are still going (to gold) for long-term investment
and want to buy it as a safe-haven asset.”
Spot gold was set for its seventh straight month of
gains, rising more than 6% in February, as U.S. tariff
uncertainty and mounting U.S.-Iran tensions boosted its
safe-haven appeal.
In Hong Kong, physical gold
premiums of $1.70, while in Japan
at a discount of $10 to premiums of up to $1.
In Singapore
$3.50 to $4.80, up significantly from a $0.50 discount to a
$2.20 premium last week
Published on February 27, 2026
