Lower gold prices boost metal demand in leading Asian countries

Demand for physical gold increased in many Asian countries this week, driven by lower global prices that have sparked consumer interest in the metal. In India, for example, suppliers offered discounts of up to $34 on bullion purchases. Reuters noted that this price included 6% import and 3% trade fees. A week earlier, the maximum discount for buying gold was only $16.

On Friday, the metal fell to 92,900 rupees (around $1,085) per 10 grams on the Indian market. Last month, the bullion traded at a record 99,358 rupees (nearly $1,161).

Meanwhile, in China, the world's largest consumer of gold, suppliers have set premiums for the precious metal between $9 and $50 per ounce, a slight decrease from the previous week's range of $42–49.

ANZ analysts predict stable jewelry demand in Asia over the coming quarters. Moreover, experts believe that gold will continue to be a popular investment choice for retail consumers.