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Gold Demand Subdued in Asia as Prices Fluctuate
23 Aug
Summary
- Gold prices in India hit record high, then eased
- Indian jewelers resume buying ahead of festivals
- Retail gold buying in China and Singapore remains quiet
As of August 24, 2025, the gold market in key Asian hubs has seen subdued demand this week, with price volatility keeping buyers cautious. In India, gold prices hit a record high of 102,250 rupees per 10 grams earlier this month, but have since eased to around 99,300 rupees. This has prompted Indian jewelers to resume their purchases, feeling more confident about festival demand.
The upcoming Dussehra and Diwali festivals in October are traditionally auspicious times for gold buying in India. While Indian dealers were quoting discounts last week, they are now offering a premium of up to $3 per ounce over the official domestic price. However, retail buying in the country remains at around 60% of normal levels.
In China, the world's top gold consumer, bullion is trading between $3 and $8 per ounce over the global benchmark spot price. Similarly, gold demand in Singapore has been quiet, with prices ranging from at-par to a $2.50 premium. Analysts attribute the thin trading conditions to the "doldrums" in the gold market, which could lead to exaggerated price movements on news from events like the Jackson Hole symposium.
