April 10 (Reuters) – Gold demand in India picked up slightly this week ahead of a key festival, although elevated prices weighed on sentiment, while premiums in China narrowed as retail demand slowed.
Akshaya Tritiya, the second-biggest gold-buying festival in India after Dhanteras when buying gold is considered auspicious, will be celebrated on April 19.
“Retail buyers have started making bookings for the Akshaya Tritiya festival, but footfalls are far lower than normal. They are struggling to adjust to higher prices,” said an Ahmedabad, Gujarat state-based jeweller.
Domestic gold prices in India were trading around 152,800 rupees ($1,651.98) per 10 grams on Friday after rising to a three-week high of 154,934 rupees earlier this week.
Dealers quoted discounts of up to $6 an ounce and premiums of $9 an ounce over official domestic prices this week, inclusive of 6% import and 3% sales levies, compared with last week’s discounts of up to $8 an ounce and premiums of $2.
“Ahead of Akshaya Tritiya, jewellers usually make healthy purchases, but this year their buying is negligible. The atmosphere doesn’t suggest the festival is approaching,” said a Mumbai-based bullion dealer with a private bank.
In top consumer China, bullion traded at premiums of $3 to $5 an ounce over the global benchmark price this week, lower than last week’s premiums of $12-$17.
Chinese premiums narrowed sharply due to softer retail demand and expectations of quota loosening, said Bernard Sin, regional director of Greater China at MKS PAMP.
Meanwhile, China’s central bank stayed the course on gold purchases for a 17th consecutive month.
“Despite global price weakness, the central bank’s buying supported sentiment… Jewellery demand remains weak, down about 25% year-on-year, while investment demand is still resilient but more selective,” Sin said.
International spot gold prices were on track for a third consecutive weekly gain on optimism surrounding the U.S.-Iran ceasefire.
In Hong Kong, physical gold traded at par to premiums of $3, while in Japan , gold was sold at a premium of $1.
In Singapore , gold was sold at premiums of $1 to $3, versus premiums of $0.25 to $1.80 last week.
($1 = 92.4950 Indian rupees)
This report is given by Reuters. The Sen Times holds no responsibility for its content.
Is gold buying auspicious during Akshaya Tritiya?
Akshaya Tritiya is considered one of the most auspicious periods for gold acquisition in Hindu culture, second only to Dhanteras. It is traditionally believed that purchasing precious metals on this day ensures eternal prosperity and spiritual merit for the household.
Why are gold premiums easing in China?
Chinese gold premiums narrowed to $3–$5 per ounce this week due to cooling retail demand and anticipated loosening of import quotas. This contraction reflects a rebalancing of the domestic market as the initial surge in physical investment demand begins to stabilize.
What is the effect of high gold prices on Indian festival demand?
Elevated domestic prices have significantly suppressed retail footfall and jeweler inventory restocking ahead of the spring festival season. Although bookings are occurring, the total volume of transactions remains well below historical norms as consumers struggle to adjust to the current price environment.
How much is 10 grams of gold in Indian rupees?
As of April 10, 2026, 10 grams of gold in the Indian domestic market is trading at approximately 152,800 rupees. This valuation follows a recent three-week peak where prices reached as high as 154,934 rupees per 10-gram unit.
What is the impact of central bank buying on gold sentiment?
Sustained central bank acquisitions, particularly a 17-month streak by China, provide a fundamental floor for gold prices and bolster investor confidence. These institutional inflows offset weakness in the jewelry sector and signal long-term bullish sentiment despite short-term fluctuations.
Will gold prices drop before Akshaya Tritiya 2026?
While international spot prices recently gained on geopolitical optimism, domestic Indian prices remain near record levels due to taxation and currency depreciation. A significant price correction before the April 19 festival is unlikely given the current strength of institutional buying.
