World

India’s Gold Market Dips: How Demand Slowdown and Global Trends are Reshaping Asian Premiums

India‘s gold market sees discounts after festivals. Other Asian hubs show rising premiums amid global rate drops.

byAndres Castro

October 31, 2025, 10:14 AM

A stack of small, shiny gold bars rests in front of a blurred screen displaying a volatile financial chart.

A stack of small gold ingots in focus, with a fluctuating financial chart in the background. By MDL.

Executive Summary

India’s gold market shifted to offering discounts of up to $12 per ounce, the first time in seven weeks, due to a significant slowdown in demand following the Dhanteras and Diwali festivals.

Major Asian gold markets including China, Singapore, Hong Kong, and Japan saw premiums rise this week, indicating increased investor interest as global gold rates softened.

The contrasting regional trends in gold demand and pricing occurred against a backdrop of global spot gold prices heading for their second consecutive weekly decline.

The Story So Far

India’s gold market is experiencing a post-festival slowdown after the auspicious Dhanteras and Diwali, traditionally peak buying periods, leading to discounts following a period of domestic price volatility and record highs. In contrast, other major Asian gold markets are seeing rising premiums, as a softening in global gold rates has spurred increased investor interest.

Why This Matters

India’s gold market is experiencing a significant post-festival slowdown, leading to discounts and caution among jewelers regarding stocking for the upcoming wedding season due to price volatility and reduced customer footfall. This contrasts sharply with other major Asian hubs like China, Singapore, and Japan, where softening global gold prices are spurring increased investor interest and driving premiums higher, highlighting a notable regional divergence in demand dynamics.

Who Thinks What?

Indian gold dealers are offering discounts, and demand has slowed significantly post-festivals due to price volatility and high domestic prices, leading jewellers to reduce stocking for the upcoming wedding season.

Chinese gold dealers and consumers are seeing rising premiums, indicating increased buying activity in that market.

Investors and dealers in Singapore, Hong Kong, and Japan are also observing increasing premiums, with Singapore noting heightened investor interest as global gold prices softened.

India’s gold market has shifted to offering discounts for the first time in seven weeks, as demand slowed following key festivals, while premiums in other major Asian hubs like China, Singapore, Hong Kong, and Japan ticked higher this week amidst a pullback in global rates. Indian dealers offered discounts of up to $12 per ounce over official domestic prices by October 31, a notable change from the previous week’s premiums of up to $25.

India’s Market Dynamics

The slowdown in Indian gold demand comes after the auspicious Dhanteras and Diwali festivals, traditionally peak buying periods. Domestic gold prices have also seen a decline, falling to approximately 121,500 rupees per 10 grams after reaching a record high of 132,294 rupees earlier in the month.

According to Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji, price volatility has contributed to the reduced demand, with some investors opting to sell coins for profit. Jewellers are reportedly slowing down on stocking for the upcoming wedding season in November due to a sharp drop in customer footfalls post-festival.

Trends Across Asia

In contrast to India, other top Asian gold markets observed rising premiums. China, the world’s largest consumer, saw bullion trade at par to a $4 premium an ounce over the global benchmark spot price. This marks an increase from the previous week, which saw prices fluctuate between a $20 discount and an $8 premium.

Singapore’s gold market also registered premiums, with bullion trading between at par and a $3 premium. Brian Lan, managing director at Singapore-based GoldSilver Central, noted increased investor interest as prices softened this week. Similarly, Hong Kong sold gold at par to a $1.6 premium, and Japan saw a $1 premium over spot prices.

Global Context

These divergent regional trends unfold against a backdrop of global spot gold prices heading for their second consecutive weekly decline. The fluctuation in international rates appears to have spurred buying activity in markets where premiums are now emerging.