Gold markets across Asia are witnessing notable shifts this week as India gold prices hit record highs, prompting wider discounts, while China’s gold demand remains subdued amid volatility and rising costs. Investors across Japan and Singapore are also adjusting their strategies ahead of the holiday season, reflecting the global impact of fluctuating bullion prices.

---

India Gold Discounts Widen Despite Wedding Season Demand

Domestic gold prices in India reached an all-time high of ₹132,776 per 10 grams on Friday, sparking a cautious approach from buyers and retailers. Traditionally, the Indian wedding season drives strong demand for gold, but this year, the price surge has tempered enthusiasm.

Jewellers in Mumbai reported significantly lower store footfalls, indicating that even festive buying has slowed. According to a Mumbai-based bullion dealer:

“Rising prices are really killing the wedding-season vibe. Buyers just aren’t willing to shop at these highs.”

As a result, gold discounts in India have widened to as much as $34 per ounce, inclusive of import duties (6%) and sales levies (3%), compared to last week’s maximum discount of $22. The widening discount reflects reduced demand amid record-high prices, signaling a shift in consumer behavior.

---

Chinese Gold Demand Remains Muted

China, the world’s top gold consumer, continues to show subdued physical demand despite fluctuating global gold prices. Bullion in China traded at discounts of up to $20 per ounce and premiums of $10, relative to global benchmark spot prices.

Bernard Sin, Regional Director for Greater China at MKS PAMP, explained:

“Physical demand remains soft and volatile as gold prices reach record highs and discounts deepen. The recent VAT adjustment has increased costs for jewellers and further weighed on retail demand.”

China’s recent regulatory adjustments, including a VAT reduction exemption on certain gold purchased via the Shanghai Gold and Shanghai Futures exchanges, have further influenced trading behaviors and retail consumption.

---

Global Market Overview

Gold prices in Asia are being supported by expectations of further interest rate cuts in 2026, following signals from the U.S. Federal Reserve that it may ease hawkish policies. These macroeconomic factors are keeping bullion near a seven-week high in global trading.

• Singapore: Gold traded at premiums of $1.50 to $3.50 per ounce.
• Hong Kong: Gold fluctuated from a $0.50 discount to a $2.50 premium.
• Japan: Bullion traded at discounts of up to $5.50 per ounce and premiums of $1, with slower demand and retailers holding smaller inventories ahead of New Year holidays.

Investors in Japan, in particular, are booking profits, reflecting caution before the year-end festivities.

---

Outlook for Asian Gold Markets

The Asian gold market is showing divergent trends. India, traditionally driven by wedding and festival demand, faces weakening consumer activity as prices soar. China’s market remains soft due to tax adjustments and volatile spot prices. Meanwhile, countries like Japan, Singapore, and Hong Kong are experiencing minor fluctuations, largely influenced by investor sentiment and macroeconomic expectations.

As gold continues to be a safe-haven asset amid global uncertainty, monitoring domestic price trends, regional discounts, and central bank policies will be key for investors and retailers.

---

Conclusion:

Record-high gold prices in India and muted demand in China highlight the complexities of the current Asian bullion market. Retailers and investors must navigate widening discounts, VAT adjustments, and macroeconomic influences to make informed decisions.