Gold prices may be falling, but India’s buyers are still not biting.
Even after a sharp correction, India gold demand remains sluggish this week. Most buyers are holding off, hoping prices will drop even more. It’s a classic wait-and-watch move—especially during what is usually a slow season for gold buying in India.
Why Indians Are Holding Back
Gold dealers in India were offering discounts of up to $18 per ounce over official domestic prices this week. That’s lower than last week’s $27 discount. But still, retail buyers didn’t rush in.
“Even after the price dip, people are staying on the sidelines,” said a jeweller in Kolkata. “They’re waiting for a bigger fall.”
Domestic prices were hovering around ₹96,100 per 10 grams on Friday. That’s quite a drop from the all-time high of ₹101,078 earlier this month. But the buzz just didn’t return to the showrooms.
A bullion dealer from Mumbai added that jewellers aren’t stocking up either. Why? Because many retail customers are swapping old jewellery for new ones. So, a lot of the demand is being met internally—without any need for new gold purchases from banks.
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Global Scene: China and Singapore Step In
While India hits pause, others hit play.
In China, dealers charged premiums of $12–$14 an ounce over global spot prices. That’s an increase from last week’s $10. “People still see gold as a safe haven,” said Peter Fung from Wing Fung Precious Metals. He also pointed out that a drop below $3,300 might trigger even more buying.
Singapore saw a similar trend. Retail buying picked up, and wholesalers were short-covering as prices dropped from last week. Gold there was selling at par to a $2.20 premium.
In Hong Kong, prices were flat to a $2 premium, while Japan saw flat to just a $0.50 premium.
The global spot gold price was around $3,294 per ounce on Friday, down from nearly $3,450 last week.
What It Means for India
India’s gold market is clearly in a mood of restraint. Cultural and seasonal factors play a part, but psychology is key here. When gold hits record highs, even a slight dip doesn’t feel “low enough” to trigger buying. People want a steal—not just a deal.
Meanwhile, China’s and Singapore’s gold moves are shaping regional trends. If prices fall further, Indian demand could bounce back—but for now, India seems to be watching from the sidelines.
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