Gold discounts in India widened to their deepest in 10 months as a rebound in prices curbed demand, while China demand picked up as the bullion’s safe-haven appeal shone through via rising premiums after markets returned from the Lunar New Year holiday.
Indian bullion dealers offered a discount of up to $65 per ounce over official domestic gold prices this week – inclusive of 6% import and 3% sales levies, up from last week’s discount of up to $18.
“Retail buyers just aren’t ready to buy at these prices. For a lot of them, the current levels are simply too expensive to afford,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
Domestic gold prices were trading around ₹160,000 per 10 grams on Friday, after falling to as low as ₹133,687 earlier this month.
Jewelery demand has fallen sharply and is failing to draw support even from the ongoing wedding season, said a Mumbai-based bullion dealer with a private bank.
Weddings are a major driver of gold purchases in India, with jewelery being a common gift from families and guests.
China markets came back from the Lunar New Year holiday on Tuesday with higher demand. Gold traded at premiums of $12-$13 an ounce above the global benchmark spot price
“After the Chinese market returned this Tuesday, the premiums were still very steady (on the) open, a few days later and now the physical demand has picked up significantly,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
“People are still going (to gold) for long-term investment and want to buy it as a safe-haven asset.”
Spot gold was set for its seventh straight month of gains, rising more than 6% in February, as US tariff uncertainty and mounting US-Iran tensions boosted its safe-haven appeal.
In Hong Kong, physical gold
In Singapore
Published on February 27, 2026