Gold prices rise as demand recovers in Asian markets

As reported by Kitco News, gold prices are currently rising across global markets, driven largely by buyers and sellers in Asia, particularly China and India.

India’s gold market is finally showing signs of recovery. For the first time in five months, the metal is trading at a premium. Earlier last week, dealers were offering discounts of up to $24 per ounce, but by Friday, they were charging a $3 premium.

India's gold demand is recovering thanks to the Akshaya Tritiya festival and a pullback in prices after the precious metal hit a record high near $3,500 per ounce. Dealers note that the current correction has drawn in previously hesitant investors, and their interest could grow significantly in the coming weeks.

Meanwhile, China's market activity has slowed temporarily due to the Labor Day holiday in the period of May 1–5. Saxo Bank's Ole Hansen notes that the key question now is whether Chinese demand will pick up post-holiday. If the current trend persists, gold risks falling to $2,950–3,000 per ounce.