Silver Rises Over 120% YTD 
Published: 06-06-2025, 02:27 pm | Updated: 06-06-2025, 02:28 pm
The India gold demand slump is worsening as soaring prices and seasonal factors like the early monsoon continue to weigh on buying activity.
India’s gold market is seeing deepening discounts as local prices approach all-time highs, discouraging consumer demand. Dealers are now selling gold at up to $56 below official rates — nearly double last week’s discount. Seasonal factors like the early monsoon, combined with already high interest rates across Asia, have further weakened physical gold buying. This trend reflects how macro conditions and seasonality can sharply influence retail gold demand in major markets.
While the India gold demand slump continues due to soaring prices, dealers in top consumer China charged premiums of $10–$14 an ounce over global benchmark rates, compared to par to a $15 premium last week.
Hugo Pascal, a precious metals trader at InProved, noted that high gold prices are starting to take a toll on Chinese demand, as seen in the decline in trading volumes. This suggests that fewer buyers are willing to purchase gold at current elevated prices.
Meanwhile, in other key Asian markets, premiums remained relatively modest. In Hong Kong, gold was selling at a small premium ranging from $0.30 to $1.30 per ounce over global benchmark prices. In Singapore, prices were mostly flat, with gold trading either at par or up to $2.50 above the international rate.
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