Gold Prices in India Today, August 2: Demand Picks Up as Prices Ease.
Gold demand in India and other major Asian markets rebounded this week, spurred by a dip in prices that revived consumer interest, according to a Reuters report.
Gold Prices in India
In the domestic market, 24-karat gold was trading at approximately ₹97,700 per 10 grams on Friday. This marks a decline from last week’s peak of ₹1,00,555. However, on Saturday, prices edged up again following weaker-than-expected jobs data from the US.
A jeweller based in Pune told Reuters, “This week, footfall was better than last week. Buyers were inquiring about price trends and making small purchases.”
Reflecting improved demand, discounts offered by Indian gold dealers narrowed to about $7 per ounce over official domestic prices (which include a 6% import duty and a 3% sales levy), down from up to $15 the previous week.
Jewellers were also seen replenishing stock following the global price correction. However, the depreciation of the Indian rupee limited the impact of the price drop, said a Mumbai-based bullion dealer with a private bank.
Despite the recent uptick in demand, the World Gold Council warned that India’s gold consumption for 2025 is projected to hit a five-year low, with persistently high prices dampening jewellery purchases.
Gold Demand Across Asia
China:
Gold dealers quoted prices between a $4.20 discount and a $12 premium per ounce over global rates. Hugo Pascal, a precious metals trader at InProved, noted that Chinese buyers were “slightly buying the dip”, citing increased trading volumes on the Shanghai Gold Exchange.
Hong Kong:
Gold was sold at global parity to a premium of $1.50 per ounce.
Singapore:
Premiums ranged from parity to $1.40 per ounce above international rates.
Japan:
Dealers offered gold at parity to a modest $0.60 premium. A Japan-based trader told Reuters, “There was lots of demand to buy if the price dropped even slightly… Gold is being purchased as an asset class amid low interest rates.”
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