Gold demand in India ‌improved slightly this week as softer prices drew in ​jewellery buyers even as caution prevailed, while premiums in ⁠China eased.

Gold prices in India dropped to their lowest since April 2 at 146,444 rupees per 10 grams on Thursday, and are ‌down 1.5% for the week so far.

Demand improved as the recent price correction drew buyers back, particularly those ‌for jewellery purchases, said Chanda Venkatesh, managing director at CapsGold, ‌a ⁠bullion merchant based in the southern city of Hyderabad.

Dealers ⁠quoted discounts <XAU-IN-PREM> of up to $35 an ounce over official domestic prices, inclusive of 15% import and 3% sales levies, down from last week’s discounts of ​up to $87.

While jewellers have started ‌restocking, purchases remain measured as confidence in retail demand for the coming months is still weak, said a Mumbai-based bullion dealer with a private bank.

Last month, the South Asian country ‌raised import tariffs on gold and silver to 15% from ​6% as part of efforts to ease pressure on foreign exchange reserves from higher oil prices.

India’s ⁠physically backed gold exchange-traded funds logged their first net monthly outflow in a year in May, as investors booked profits following a ‌sharp rise in prices triggered by higher import duties.

In top consumer China, bullion traded at premiums <XAU-CN-PREM> of $1 to $5 an ounce over the global benchmark price, down from $7 to $10 premiums last week.

“The $4,000 mark for gold was a good support level, and hence we can see some fresh buying interest,” said Peter ‌Fung, head of dealing at Wing Fung Precious Metals.

Spot gold hit an over ​six-month low of $4,022.29 on Thursday before closing higher, and is on track for a weekly loss.

Meanwhile, China’s ⁠central bank increased its gold reserves for a 19th month in ⁠May, data from the People’s Bank of China showed on Sunday.

In Hong Kong, gold <XAU-HK-PREM> traded between par and ‌a $1.90 premium, while in Japan <XAU-TK-PREM>, it was sold at a discount of $0.50.

In Singapore <XAU-SG-PREM>, gold was sold between a $0.50 discount and ​a $2 premium.

Published on June 12, 2026