India’s gold market is beginning to show signs of recovery after pulling back from last week’s record high of 86,592 rupees per 10 grams to about 84,750 rupees on Friday. While some buyers have returned, many consumers and retailers remain cautious, according to local jewelers.
Dealers have reduced their discounts to roughly $12–$27 per ounce, down from around $35 last week, a shift that reflects increasingly tight physical supplies. A Mumbai dealer notes there have been “hardly any imports by banks this month,” and February’s imports are projected to fall about 85% year-over-year, a decline that would put arrivals at their lowest level in two decades.
Across the rest of Asia, market conditions are mixed. China’s gold market remains subdued, with prices trading around par to $3 discounts. Imports through Hong Kong in January fell sharply—down 44.8% from December—to volumes not seen since April 2022. Analyst Ross Norman says that profitable shipping opportunities to New York are “draining physical liquidity from other markets,” contributing to the uneven flow of metal across regions. Meanwhile, Singapore and Hong Kong are seeing trading confined to narrow ranges, oscillating between small discounts and modest premiums.
Overall, the regional picture points to constrained supply and cautious demand. Reduced discounts in India suggest dealers are coping with tighter stocks, even as consumer hesitancy limits a swift rebound in retail buying. In China and Hong Kong, weaker imports and narrow trading ranges reflect muted domestic demand and shifting flows of physical gold to more profitable international hubs. Market participants will be watching import data and discounts closely in the coming weeks to gauge whether the recent pullback consolidates into a broader recovery or signals further hesitation among buyers.