Gold Demand Picks Up as Yellow Metal Hits 1-Month Low; Full Details Inside
In global markets, spot gold touched its lowest level in a month this week and registered its third straight weekly decline.
Gold Prices in India – August 2 Update:
As per a Reuters report, demand for physical gold in India and other major Asian countries has improved this week, driven by a dip in prices which encouraged buyers. In the international market, spot gold dropped to its one-month low this week and posted its third consecutive weekly fall.
In India, the price of 24-carat gold was hovering around ₹97,700 per 10 grams on Friday, after having reached ₹1,00,555 the previous week. However, on Saturday, gold rates surged following weaker employment data from the United States.
“This week saw better customer turnout compared to last week. People were enquiring about the price trends and making small-scale purchases,” a jeweller from Pune told Reuters.
Discounts offered by Indian gold dealers shrank to around $7 per ounce over the official domestic rates — which include a 6% import duty and 3% sales tax — in comparison to up to $15 last week.
Jewellers were eager to restock after the decline in international prices. However, the rupee’s sharp fall offset some of the benefits from the price correction, noted a bullion trader in Mumbai working with a private bank.
The World Gold Council stated on Thursday that India’s gold consumption in 2025 is expected to hit a five-year low, as record-high prices are discouraging jewellery purchases.
Gold Demand Across Other Asian Markets
In China, dealers quoted gold with a wide variation — from a $4.2 discount to a $12 premium per ounce over global prices.
“China seems to be buying the dip in gold… trading volumes for the physical benchmark contract AU9999 on the Shanghai Gold Exchange have been increasing (11 tonnes were traded yesterday), showing renewed interest in gold,” said Hugo Pascal, a precious metals trader at InProved, in a statement to Reuters.
In Hong Kong, gold was sold at either par or with a $1.50 premium, while in Singapore, prices ranged from par to a $1.40 premium.
In Japan, bullion was traded at par to a premium of $0.60.
“There was strong buying interest whenever the price fell slightly. Irrespective of the Japan-US trade talks, people are investing in gold as a reliable asset due to low interest rates,” a trader based in Japan told Reuters.
