Physical gold demand softened across Asia this week, with India seeing the sharpest decline as higher prices and the conclusion of the wedding season dampened buying activity.
In India, dealers responded to weaker interest by offering substantial discounts — at times as much as $31 per ounce — to stimulate purchases. Meanwhile in China, premiums also eased, even though import volumes remained relatively high.
The slowdown in India is partly seasonal: monsoon rains and the end of the peak wedding period typically curb consumer appetite for new jewellery. Many jewellers are postponing fresh stock purchases as domestic prices sit near 94,900 rupees per 10 grams, prompting a wait-and-see approach until demand recovers.
Across the region, the combination of elevated local prices and reduced festival and wedding-related demand has pressured physical offtake. Dealers and retailers have adjusted pricing and inventory strategies to manage cash flow and reduce surplus stock, while buyers are more inclined to wait for clearer price signals before committing to new orders.
In China, even with softened premiums, steady imports suggest some underlying interest from wholesalers and manufacturers securing supply for future production or export. However, retail-level demand has been mixed, and any recovery will likely depend on improved consumer sentiment and seasonal festivals or occasions that traditionally boost jewellery purchases.
Overall, the market is navigating a temporary lull driven by seasonal patterns and near-term price sensitivity. Industry participants will be watching for shifts in domestic demand, any changes in import or taxation policies, and global price movements that could prompt renewed buying or further price adjustments.