Gold Price Trends / Prices touched the sky, India still made a new record in gold

Gold Price Trends: Gold prices defied all estimates this week. On the one hand, while its prices skyrocketed, on the other hand, India set a new record in gold demand. Gold demand in India improved in the past week, although it remained below normal levels. This is because prices came down from their record highs. Meanwhile, traders continued to offer discounts on gold in China.

Gold demand rises

Gold demand is now seeing a rise. The main reason for this is that prices are falling. However, many buyers are still waiting for further decline in prices. On Friday, the price of gold in the domestic market was Rs 84,750 per 10 grams, while last week it had reached a high of Rs 86,592. Traders in India offered discounts of $12-$27 per ounce on domestic prices this week, which included 6% import duty and 3% sales tax. This discount was less than last week, when it was up to $35.

According to a trader at a bullion importing bank in Mumbai, gold supplies are getting tighter as no imports were made by banks this month.

Imports likely to fall

India's gold imports in February are likely to have fallen by 85% compared to last year, hitting the lowest level in 20 years. Gold prices in China were also trading at a discount of $3 to spot prices. China's total gold imports through Hong Kong in January fell 44.8% to the lowest level since April 2022.

Situation in other countries

• Singapore: Gold was trading between a discount of $0.50 and a premium of $3.
• Hong Kong: Traders sold gold between a discount of $1.8 and a premium of $2.3.
• Japan: Bullion sold between a discount of $6 and a premium of $1.5.
• According to a Tokyo-based trader, sales volumes are currently higher than buybacks as investors wait for prices to fall further.

Conclusion

The gold market continues to fluctuate. While demand is improving in India, there is a possibility of a sharp decline in imports. Prices in the international market also remain volatile, increasing uncertainty among investors. It will be worth watching in which direction gold prices and demand will go in the coming time.