This week Asian physical gold markets saw subdued buying as higher prices weakened sentiment and prompted dealers to widen discounts. In India — the world’s largest consumer — jewellers were quoting discounts of up to $15/oz against official domestic rates (which include a 6% import duty and 3% sales tax), compared with discounts around $10/oz last week. Retail demand was minimal, with many shops delaying new purchases amid lingering uncertainty.
In China, dealers’ quotes fluctuated between a $5/oz discount and a $4/oz premium versus international benchmarks, while customs figures showed imports falling for a second straight month. Hong Kong’s premium ranged from zero to $1.50/oz, Singapore’s from zero to $2.50/oz, and Tokyo dealers offered slight discounts to a small premium, roughly $0.50 discount up to $0.70 premium. Throughout the region buyers were cautious; some market participants opted to sell existing holdings rather than add to positions.