Unlock the Gold Secret: Deep Cuts in India, Muted China – What's Next?

India's gold market cooled sharply during peak wedding season, with dealers offering discounts up to $34 per ounce (including 6% import, 3% sales levies)—up from $22 last week—as domestic prices hit ₹132,776 per 10 grams Friday. Jewellers report footfall drops, blaming high costs for killing festive vibe despite gifting traditions.​

Market Dynamics:

India Slump: Physical demand falls amid volatility; Mumbai traders note "sharp drop" in store visits, prompting inventory cuts.​

China Muted: Discounts of $20/oz to $10 premiums; VAT removal on exchange gold raised jeweller costs, weighing retail appetite.​

Global Backdrop: Spot gold near 7-week high on US Fed's dovish signals for more cuts; Singapore/HK premiums slim at $1.5-3.50.​

Weak Asia demand contrasts ETF/central bank buying; analysts eye price correction if physical stays soft.​

Sources: Reuters, Business Standard