India Sees Gold Sold at Discount for First Time in Seven Weeks as Festival Demand Ebbs

Commodities

31st October 2025, 5:19 AM

India Sees Gold Sold at Discount for First Time in Seven Weeks as Festival Demand Ebbs

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Short Description :

Indian gold dealers offered discounts of up to $12 per ounce this week, the first time in seven weeks, as demand slowed following major festivals like Dhanteras and Diwali. Domestic gold prices have fallen from a record high. Meanwhile, premiums rose in other Asian markets like China and Singapore as global gold rates pulled back.

Detailed Coverage :

India has seen gold sold at a discount for the first time in seven weeks, with dealers offering up to $12 per ounce below official domestic prices. This shift occurs as demand has cooled significantly after the auspicious festival period, which includes Dhanteras and Diwali, historically busy times for gold purchases. The price volatility also led some investors to cash in on previous profits by selling gold coins.

Domestic gold prices have dropped to approximately 121,500 Indian rupees per 10 grams, a notable decline from the record high of 132,294 rupees reached earlier this month. This contrasts with other major Asian gold hubs where premiums have increased. In China, bullion traded from par to a $4 premium, a significant jump from the previous week's discount. Singapore saw gold trading between par and a $3 premium, while Hong Kong traded at par to a $1.6 premium. Japan also reported a $1 premium.

This divergence suggests varying market dynamics, with India experiencing a post-festival slowdown and reduced consumer buying, while other regions saw increased activity driven by a pullback in global gold rates. Jewellers in India are now slowing down their stock build-up for the upcoming wedding season, anticipating lower footfalls compared to the festival rush.

Impact: This news indicates a potential softening of demand in India, a key global consumer of gold. This could affect companies involved in gold mining, refining, and jewellery manufacturing. For investors, it signals a shift in market sentiment and pricing dynamics. The increase in premiums in other Asian markets suggests a broader global price adjustment, though India's discount points to specific local factors. Rating: 6/10

Difficult Terms: Discount: Selling gold at a price lower than its official or benchmark rate. Premium: Selling gold at a price higher than its official or benchmark rate. Spot gold: Gold that is available for immediate delivery at the current market price. Dhanteras: An Indian festival associated with wealth and prosperity, often marked by purchasing gold and silver. Diwali: The festival of lights, a major Hindu festival where buying gold is considered auspicious.