Gold Price Jumps to Rs 148,046; India Demand Eases While China Buying Boosts Stability

Gold Price Jumps to Rs 148,046; India Demand Eases While China Buying Boosts Stability​

Gold demand in India showed a slight decrease on Friday as prices experienced a notable rebound after consolidating at a three-month low. Prices rose significantly in the domestic market, reaching up to Rs 148,046 per 10 grams, following previous trading near the floor of Rs 140,450 seen on Tuesday.

Indian Jewellers Face Cautious Buying Amid Price Rebound​

Despite the price movement, dealers are maintaining a cautious stance due to market volatility and seasonal factors in India. A Kolkata-based jeweller noted that many buyers were actively waiting for a correction before initiating small purchases at the beginning of the week. This trend reflects the onset of the lean demand season, as there are no major festivals on the near horizon.

A Mumbai-based bullion dealer further suggested that while jewelers have been purchasing, market uncertainty persists given volatile price action. For this week, dealers quoted a premium up to $5 an ounce and a discount of $7 over official domestic prices, which is down from last week's maximum premium of $6. Furthermore, June saw gold prices fall about 8.4%, marking the first monthly drop since March.

International Spot Gold Gains as Rate Hike Fears Ease​

Internationally, spot gold achieved its first weekly gain in five sessions, trading above the $4,100 level. This positive movement was attributed to easing expectations regarding Federal Reserve interest rate hikes, following data from weak U.S. payrolls figures. The improved global sentiment is reflected across key regional markets.

In China, for instance, bullion traded at par to discounts of $2 an ounce compared to the global benchmark spot price. This represents an improvement from last week, when the discount ranged between $3 and $7.

Chinese Bullion Markets Improve Support Levels​

Analysts are maintaining a cautious optimism regarding the current support levels in the Asian markets. Peter Fung, head of dealing at Wing Fung Precious Metals, stated that $4,000 appears as a very strong support level and expects the market to remain stable around this figure for some time.

However, uncertainty remains a factor, leading some participants to hesitate excessive purchases currently. The market is currently reporting mixed conditions across Asia; in Hong Kong, gold traded between a $0.50 discount and a $1.70 premium. In Singapore, the price was sold between a $1 discount and a $1.60 premium, while Japan recorded a $0.50 discount.