Weak gold demand in India persists amid high prices

According to Reuters, gold demand in India remained subdued this week as prices hovered near record highs. Sellers are now offering discounts of up to $10 per ounce over official domestic costs (including taxes). The surge in bullion caused a significant drop in the number of people visiting jewelry stores, as many buyers delayed their purchases in anticipation of a price fall.

On Friday, gold traded at 97,500 rupees ($1,131.60) per 10 grams, which is still below last month's record high of 101,078 rupees ($1,173.12).

In June, India's bullion imports tumbled to a mere 21 tons, marking a significant 40% decrease compared to the previous year. Despite weak demand, further discount hikes have been restrained by limited supplies following a steep decline in imports, Reuters reported.

This trend extends to other Asian markets. In China, for example, gold sellers are now offering discounts of $5 to $10 per ounce as seasonal demand wanes. Such a move is a sharp contrast to last week's rates, which ranged from $10 to $25. Analysts surveyed by Reuters do not expect demand to rebound before October.