Latest News

Asia Gold: High prices of gold surpass interest in buying physical gold in Asian hubs

Asia Gold: High prices of gold surpass interest in buying physical gold in Asian hubs

The gold demand in India was sluggish due to record-high prices, and jewellers busy closing their accounts for the year. Most other Asian hubs saw a similar trend.

Harshad Ajmera, a wholesaler at JJ Gold House Kolkata, said that "Jewellers weren't making purchases." India's fiscal year runs from April through March.

The domestic gold price hit a new record of 89 796 rupees for 10 grams in the first week of this month. It has risen by nearly 15% since 2025.

This week, Indian dealers offered a discount Discounts of up to $33 per ounce on official domestic prices, inclusive of 6% import duties and 3% sales taxes. This is a significant drop from the previous week's $41 discount.

A Mumbai-based bullion seller said that the retail demand was minimal and that jewellery shops across India were reporting lower footfall.

Dealers in China, the world's largest gold consumer, offered gold at a price between $4 per ounce and $1 above international rates.

Independent analyst Ross Norman stated that "we are witnessing some demand destruction due to the elevated gold price."

China's net imports of gold via Hong Kong dropped more than five times in February, and for the second month running were lower than its exports. In February, the supply of gold bullion from Switzerland to China completely dried up.

Commerzbank said in a report that "gold demand in China in February was so low that traders exported excess gold to Hong Kong or Switzerland to take advantage of higher prices on the world market."

In Hong Kong, gold In Singapore, the price was $2 higher than par. Dealers charged $2.50 per level premium.

Bullion was traded in Japan At a discount between $0.5 and $0.7.

A Japan-based trader stated that local investors were looking for opportunities to buy at a discount, even though rate hike discussions will cause the yen to strengthen further. (Reporting by Anushree Mukherjee in Bengaluru and Rajendra Jadhav in Mumbai, additional reporting by Anjana Anil; Editing by Shailesh Kuber)

(source: Reuters)