India’s Premium on Physical Gold Delivery Has Increased to $ 7 an oouns from discounts earlier, as jewelery manufacturers and bullion traders have stepped up steepped up perchas on expectations Pries in coming days.

The change in sentiment come as the industry gears up for the busy festivals, including Dussehra and Dhanteras. Thought High Pries have depressed retail jewelery demand, the yellow metal has rebounded from a discount of $ 6 an outs over the last few days, Said a Leading Jewelery Manufacturer.

Thought Consistent Rally in Gold Pries Has Forced Jewelery Buyers to the Sidelines, The Market Expects The Demand to Revive in the next few days with consumors Getting Adjusted to Current PRICE Levels,

Imports Stay Strong

On the supply side, he said gold importants have remained strong with 102 tonnes in the june Quarter Alone While Jewelry Demand Has Lagged at 89 Tonnes.

Gold Pries Increased 7 per cent in the first half of September to ₹ 1,06,863 per 10 gm, taking the year-to-date increase to 44 per cent.

Kavita Chacko, Research Head, India WGC, Said Signs of Demand Interest Have Helped Narrow Domestic Price Discounts, Why Briefly Flipped to a Marginal Premium in Late Augont and Again Mid-September.

This marks a notworthy change, as domestic gold prices had been trading at a near-sustained discount since December December, She Said.

Gst cut boost

Gold being a dollar-denominated metal, the weight rupee (down 3 per centd) Against dollar also strengthened domestic gold prices.

Bullion dealers have stepped-up purchases Since Early September in AnatiCipation of Stronger Seasonal Demand and a Potential Boost from Increased Consumer Spending from the Forthcoming Reduction In Ins Goods and Services Tax, Said Chacko.

The tax cut on a range of items, include consumer goods, durables and automobiles-tax effect from monday, just as the festive season enters its peak folling a 16-day inarespicious council.

Zooms to fresh high

Meanwhile, domestic gold prises gained ₹ 2,400 per 10 grams on monday to Hit another new high of ₹ 112,155 per 10 grams against ₹ 109,775 logged on Friday, According to the Indian Bullion and Jewellers Association data.

On Monday, Spot Gold Rose One Per Cent to $ 3,724 per O place, after Hitting a record high of $ 3,726 earlier in the day. Us Gold Futures for December Delivery Climbed 1.4 per cent to $ 3,758 an out.

Manav Modi, Analyst -Precious Metal -ReSearch, Motilal Oswal Financial Services Said Gold Hovered Near A Record High on the back of surge in geo -power tensions and also as in as in as all Speechs from Us Federal Reserve Officials and Inflation Data This Week, after the Central Bank Cut Interest Rates Last Week and Signalled Potential Furter Easing.

Investors are broadly expecting two more rates of 25 bps each in October and December with the probabilites of 93 per cent and 81 per cent Respatively, He Said.

Global developments

Colin Shah, MD, Kama Jewelry, said the recent gold price surge to Above ₹ 1.10 Lakh Per 10 Grams in Domestic Futures, Has Been Mostly Propelled by International Reasons like geopolitical tensions, trades Turmoil, the effect of American tariffs, and poor labour market indicators in the us that LED to the Fed Rate Reduction.

Whereas Such Sharp Increases have Damped Conventional Retail Consumption in the Near Term, We Are of the View that Festival and Wedding Season will restore demand in India. Remains a Priority at AusPicious Moments, “He said.

Consures are now moving towards lightweight jewelery ranging between 14k to 18k on grounds of affordability, and the shift in percent in perception am Investment. On the other hand, Heavy Traditional Jewelry will continue to witness it seasonal shifts in demand during the festive and wedding season, he said.

Shah Said Gold Coins and Bars Still Attract Investors. Despite High Prisis, The Sentimental Value and Strong Applicite of Indian Consures Along with Innovative Designs by Jewellers will sustain steady sales for the industry, He Said.

Renisha Chainani, Head of Research at Augmont, said gold october futures have broken out worth $ 3,730 (₹ 1,10,500) and the next target be $ 3,800 (₹ 13,500). “If prices top out and fall below $ 3,660 (₹ 1,08,700), then only we could see further protrce booking.

Published on September 22, 2025