India swings to premium on price retreat; China demand muted

Gold markets are showing renewed demand in India after a recent price correction pushed domestic prices to their lowest level since late March. Dealers moved back to premiums, signaling buyers are cautiously returning, though affordability remains a constraint for retail demand. The recovery is supported by weaker international gold prices and a stronger rupee, both of which lower local bullion costs. In contrast, China’s physical gold demand remains soft, with jewellery sales subdued and ETF outflows noted, even as the People’s Bank of China continues steady reserve accumulation for a 19th straight month. Overall, the article points to improving short-term support for gold in India, but mixed global demand conditions and continued Chinese weakness may limit broader upside.