Gold demand across Asia slumped this week as record-high prices deterred buyers, with Indian dealers offering discounts of up to $39/ounce—the steepest in eight months—amid dwindling purchases. Domestic prices in India, the world’s second-largest gold consumer, soared to an all-time high of ₹87,886/10 grams, prompting jewellers to avoid stocking costly inventory ahead of the fiscal year’s end on March 31.
India’s gold imports are projected to plummet 85% year-over-year in February, hitting a 20-year low, as buyers retreat. “Demand’s taken a big hit. Everyone’s waiting for prices to stabilize,” said a Chennai-based bullion dealer.
Analysts note that high prices and macroeconomic uncertainty, including Trump-era trade policies, have sidelined investors. “Physical markets lack momentum. China’s slowdown underscores gold’s reliance on macro drivers,” said Standard Chartered’s Suki Cooper.