India turns to gold discounts post-festive season as global premiums rise amid price dip

India, Oct 31 : Gold market turned to discounts this week for the first time in nearly two months as demand slowed sharply following the festive rush of Dhanteras and Diwali, while global premiums rose amid a slight pullback in bullion prices.
Indian dealers offered discounts of up to $12 per ounce over official domestic prices (inclusive of 6% import and 3% sales levies), compared to premiums of up to $25 last week.
“Price volatility has slowed fresh buying, and some investors are booking profits by selling coins purchased earlier,” said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.
Domestic gold prices dropped to around ₹1,21,500 per 10 grams, down from a record high of ₹1,32,294 earlier this month. Global spot gold prices also remained on track for a second straight weekly fall.
Following the festive boom, jewellers across India reported a decline in footfalls, leading many to slow stock-building ahead of the November wedding season, a dealer with a private bank said.
Meanwhile, other major Asian hubs witnessed higher activity as prices softened. In China, gold traded between par and a $4 premium per ounce over the global benchmark, compared to a discount of $20 last week.
In Singapore, gold traded between par and a $3 premium, while in Hong Kong, prices ranged from par to a $1.6 premium. Japan also saw a $1 premium over spot prices.
“We’ve seen renewed investor interest, especially as prices dipped this week,” said Brian Lan, Managing Director at Singapore-based GoldSilver Central.
The contrasting trends highlight India’s post festive demand lull even as global buyers take advantage of easing gold rates.