India’s gold prices dropped to Rs 145,538 per 10 g on 28 Oct, the lowest level in almost two months, pulling a wave of physical buyers back into the market. The slide has also trimmed sellers’ discounts from up to $43 to about $14 per ounce, a sharp narrowing that signals tighter margins.
Harshad Ajmera, chief buyer at JJ Gold House in Kolkata, said the price correction "made buyers more interested and narrowed the discounts offered by sellers." He added that the market had seen a noticeable uptick in orders compared with the previous week.
With Diwali on the horizon, a Mumbai‑based dealer for a private bank warned that gold could start trading at a premium next week if prices remain near current levels. He noted that jewelers and investors were already showing heightened interest, citing the cultural urgency of buying gold during the festival season.
China, the world’s largest consumer, saw physical trade above the global benchmark, with bullion fetching premiums of $5 to $10 an ounce. Bernard Sin, regional director for Greater China at MKS PAMP, said periods of price consolidation or pullbacks drive buying, and another dip could further lift volumes.
Singapore’s market remained tight, moving from a $1.5‑ounce discount to a $1 premium, while inventory data from InProved’s Hugo Pascal hinted at a subtle uptick in physical demand. Japan’s prices stayed within a narrow band, trading at discounts of up to $0.25 or premiums of $0.5 an ounce.
Analysts now monitor whether the price will hold steady or slip below the Rs 145,538 benchmark. A sustained level could cement a premium for the next week, aligning with the surge in buyer activity as the country gears up for Dussehra and Diwali.