Gold demand in India was sluggish this week as volatile global prices and a weaker rupee deterred buyers, while China premiums rose on stockpiling ahead of the May Day holiday, reports Reuters.
Indian dealers quoted discounts of up to $5 to premiums of $9 an ounce over official domestic prices this week, inclusive of 6 per cent import and 3 per cent sales levies, down from last week's premium of up to $15, the highest since February 7.
"After Akshaya Tritiya jewellers are seeing a sharp drop in footfall, and retail demand has slowed quite a bit," said Chanda Venkatesh, managing director of Hyderabad-based bullion merchant CapsGold.
Domestic gold prices were trading around 150,300 rupees per 10 grams on Thursday after rising to a one-month high of 155,065 rupees earlier this month.
Jewellers are not making fresh purchases as they are receiving ample old jewellery in exchange for new ornaments, and they expect demand to remain subdued due to higher prices, said a Mumbai-based bullion dealer.
International spot gold prices are up about 11 per cent so far this year.
Global gold demand rose 2 per cent year-on-year in the first quarter of 2026 as a surge in purchases of gold bars and coins, along with an increase in buying by central banks, offset a 23 per cent decline in jewellery demand, the World Gold Council said on Wednesday.
In top consumer China, bullion traded at premiums of $16 to $20 an ounce over the global benchmark price, up from last week's premiums of $9 to $12.
"China's gold premium has edged higher, supported by a mix of industrial stockpiling, safe?haven substitution, and traders building inventories ahead of the long public holidays," said Bernard Sin, regional director of Greater China at MKS PAMP.
Markets in China will be closed for holidays from May 1 to 5.
"Import quotas remain a key factor: while market participants anticipate possible loosening, current restrictions are keeping supply constrained and reinforcing the premium," Sin added.
In Hong Kong, gold traded at par to premiums of $2, while in Japan , gold was sold at discounts of $0.50.
In Singapore , gold was sold at discounts of $0.50 to premiums of $3.
