INDIA GOLD DISCOUNTS HIT NEAR-DECADE HIGH; MIDEAST TENSIONS LIFT CHINA DEMAND
Gold discounts in India widened this week to their deepest point in nearly a decade as demand stayed subdued and some traders steered clear of paying import duties, while escalating Middle East tensions boosted safe-haven demand in China.
“A few importers (to India) are declaring gold as platinum-studded jewellery at customs even though it contains more than 90 per cent gold. They are able to sell this duty-free gold at a sharp discount,” said a Mumbai-based bullion dealer.
Gold imports attract a 6 per cent import duty, while platinum-studded jewellery can be imported duty-free.
Bullion dealers in India this week offered a discount of XAU-IN-PREM up to $83 per ounce over official domestic gold prices, inclusive of 6 per cent import and 3 per cent sales levies, the highest since July 2016. Last week, they were offering a discount of up to $28.
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“Jewellers are not buying as retail demand is very weak and they are busy closing their accounts for the financial year,” said a Mumbai-based dealer with a gold-importing private bank.
Meanwhile, in top consumer China, bullion traded at premiums of $20-$30 an ounce over global benchmark prices XAU-CN-PREM this week, sharply above last week’s $13-$15 premium.
“No new import quotas have been issued so far in March, restricting inflows of physical… The PBOC’s dual strategy, steady reserve accumulation combined with tight quota control, keeps the domestic market resilient yet constrained,” said Bernard Sin, regional director of Greater China at MKS PAMP.
China’s central bank extended it gold buying spree for a 16th consecutive month.
“Physical demand (for gold in China) is still very good because of the conflict in Middle East, people still would like to buy the gold as a safe haven,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
In Hong Kong, physical gold XAU-HK-PREM traded at par to premiums of $3, while in Japan XAU-SG-PREM, gold was sold at a premium of $1.
In Singapore XAU-SG-PREM, gold was traded at premiums of $0.50 to $2, versus last week’s $2.25 premium.
2026-03-13T07:39:53Z
