Gold gets its festive shine back as lower prices lure Asian buyers
Gold prices in India have dropped to a two-month low, leading to a surge in physical buying interest ahead of the festive season. Dealers report that narrowing discounts and increased demand from jewelers and investors suggest a potential market recovery.
Why it matters
Gold is a significant economic indicator and cultural staple in India; shifts in demand here often influence global bullion market trends.
Lower gold prices are beginning to bring physical buyers back into key Asian markets, with demand improving in India and signs of increased buying interest in Singapore. However, some buyers continue to wait for prices to fall further before stepping into the market.Gold prices in the country drop to Rs 145,538 per 10 grams this week, the lowest level in nearly two months. The correction brought more buyers into the market compared with the previous week and also resulted in sellers offering smaller discounts.Harshad Ajmera of Kolkata-based wholesaler JJ Gold House said demand had improved as the price decline made buyers more interested.“Demand was better than last week as prices corrected, making buyers more interested and narrowing the discounts offered by sellers,” he told Reuters.Discounts in India narrowed sharply during the week.
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