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Discounts on physical gold in India narrowed due to festival buying and global price corrections. Rajesh Rokde noted a 10% sales increase during Gudi Padwa.
By Anshul March 20, 2026, 12:29:06 PM IST (Published)
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Discounts on physical gold in India narrowed this week from near decade-high levels, supported by festival-led buying and a correction in global prices, even as broader demand trends across Asia remained uneven.
Bullion dealers offered discounts of up to $75 per ounce over official domestic prices, down from $83 last week — the deepest since 2016. Market participants said retail demand improved during the festive period, though overall buying remained below typical levels.
Purchases during Gudi Padwa and Ugadi, considered auspicious for gold buying, helped lift sentiment, particularly in western and southern India. Industry estimates suggest the festivals led to a noticeable rise in transaction values.
Rajesh Rokde, Chairman of the Gem & Jewellery Council, said sales during Gudi Padwa were “more than 10% higher” in value terms compared with last year, reflecting both festive demand and higher prevailing prices.
He added that strong customer participation, wedding-related purchases and promotional offers by jewellers supported buying activity, with nationwide business estimated at around ₹22,000 crore for the day.
Globally, gold prices have declined more than 10% since late February, pressured by a stronger US dollar amid geopolitical tensions. However, the price correction has yet to trigger a broad-based recovery in physical demand in India, with jewellers largely focused on financial year-end closures.
In China, premiums over international prices fell to $10–$22 per ounce from $20–$30 last week, indicating softer near-term demand. Analysts said the drop in Shanghai premiums points to easing buying pressure, even as structural factors such as central bank purchases continue to underpin the market.
Elsewhere in Asia, premiums were largely steady, with Hong Kong trading near parity, Japan around $1, and Singapore in a narrow $0.50–$2.50 range.
-With Reuters inputs
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