- Domestic India prices drop to 136,700 rupees from record highs
- Indian dealers' charge premiums of $15/oz
- China flips to a $3/oz premium from last week
Jan 2 (Reuters) - Gold traded at a premium in top hubs India and China for the first time in about two months this week as a correction from all-time highs helped lift retail demand, which had been hit by an unprecedented rally in prices.
Indian dealers charged a premium of up to $15 per ounce over official domestic prices this week – inclusive of 6% import and 3% sales levies – up from last week's discount of up to $61.
Domestic gold prices traded at around 136,700 rupees per 10 grams on Friday after hitting a record high of 140,465 rupees last week.
Retail buying improved slightly this week after prices corrected sharply from record-high levels, said a New Delhi-based jeweller.
However, international benchmark spot gold kick-started the New Year on a strong note on Friday, resuming its rally after ending 2025 with gains of 64%, its largest since 1979.
"Many buyers are holding off on purchases because prices are volatile and they're unsure which way the market is headed," said a Mumbai-based bullion dealer with a private bank.
In top consumer China, the bullion flipped from trading at a discount to premiums of $3 an ounce above the global benchmark spot price this week on robust retail demand and a sharp correction in spot prices.
"It seems that (Chinese) retail demand remains relatively robust, and especially so if you consider where prices are just now. Long and short, physical demand volume remains pretty robust...after a good correction in prices," said independent analyst Ross Norman.
The recent price volatility discouraged customers amid what was already very thin volume trading as is seasonally the case during the end-year holiday season, said Peter Fung, head of dealing at Wing Fung Precious Metals.
In Singapore , gold was sold at prices ranging from a discount of $0.50 to premiums of $1.20 an ounce.
In Hong Kong, gold traded at par to a $1.70 premium, while in Japan, bullion sold at par with spot prices.
($1 = 90.1250 Indian rupees)
Reporting by Ishaan Arora in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Janane Venkatraman
Source: Reuters