Chinese demand for gold has strengthened as concerns about trade tensions have driven investors toward the safe-haven metal. Dealers in China are now quoting gold at $6 to $13 per ounce above international benchmark prices, a noticeable change from the previous week when domestic quotes ranged from a $4 discount to a $1 premium.
Analyst Ross Norman describes the market as a “two-way market,” where heightened uncertainty attracts fresh buyers even as some holders sell to lock in gains after recent record highs. Sales of newly minted gold bars have been particularly robust as investors seek physical metal.
By contrast, purchasing activity in India has softened. Indian buyers are quoting discounts of up to $20 per ounce—an improvement from last week’s discounts of as much as $33—as they await clearer price direction. Indian gold prices reached 89,700 rupees per 10 grams on Friday, after touching an all-time high of 91,696 rupees earlier, representing about a 15% rise so far in 2025.
Central banks are expected to remain active in the gold market amid policy uncertainty. Concerns about recent trade measures and tariff proposals have reinforced the appeal of bullion as a reserve asset, encouraging continued official-sector accumulation.
Overall, the divergence between strong Chinese physical demand and tentative buying in India illustrates how regional factors and investor sentiment are shaping local premiums and discounts. Market participants are closely watching whether elevated geopolitical and trade risks will sustain bullion’s appeal, or whether profit-taking and stabilizing prices will temper demand in the weeks ahead.