Gold demand in Asia declines due to price fluctuations — Reuters

Demand for physical gold weakens in Asian countries due to price volatility, Reuters reports. In China, the world's largest gold consumer, market participants are hesitant to increase purchases, anticipating further price declines. According to Hugo Pascal, a trader at InProved, significant demand recovery may only occur if prices drop to $3,000–$3,100 per ounce.

Reuters notes that new regulations introduced by the People's Bank of China to combat money laundering through precious metals transactions have further dampened buyer interest. These measures complicate domestic gold circulation, pressuring potential demand from private investors and jewelry companies.

In India, gold discounts to global prices, including taxes, narrowed to $8 per ounce. This shift follows limited metal imports in May–June and scarce scrap availability. Seasonal factors also suppress interest, as the June-September monsoon period traditionally sees reduced jewelry demand.