High gold prices dampen demand in almost all world markets

Gold consumers’ demand in China and India remained negligible last week as buyers stayed away from purchases due to record-high prices. Domestic gold prices hit a record high of 86,592 rupees ($998.61) per 10 grams this week and have risen more than 12% so far in 2025 after a 21% gain last year. Indian dealers this week offered a discount of up to $35 an ounce over official domestic prices, – inclusive of 6% import and 3% sales levies, up from last week’s $26 discount.

The wedding season is underway but jewellers aren’t making any purchases due to lacklustre retail demand. Weddings are a major driver of gold purchases in India, with gold jewellery forming a crucial part of a bride’s attire and a popular gift from family and guests. In China, gold was sold at a discount between $1-$3 per ounce over spot prices.

Meanwhile, gold exports from Switzerland to India and China plunged 88% and 99%, respectively on an annual basis, customs data showed. In Singapore, dealers quoted a premium of $3-$4 per ounce. Dealers in Hong Kong charged on par to $2.20 per ounce premiums. In Japan, bullion was sold between a discount of $5 and a premium of $1.5. And, since the Japanese yen was very strong this week, many people wanted to buy bullion.