Gold prices hit record high in India, demand drops
Gold prices in India are hovering around ₹160,000 per 10gm, but local demand has dropped off.
Dealers are now offering steep discounts—up to $65 per ounce, way up from last week's $18—as shoppers hold back, hoping prices will fall even more.
Retail buyers not ready to buy gold at these prices
High gold prices have put a damper on wedding season shopping, with many finding jewelry just too expensive right now.
As proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji, Ashok Jain said, "Retail buyers just aren't ready to buy at these prices. For a lot of them, the current levels are simply too expensive to afford."
Meanwhile, some people had already bought their gold when rates were lower.
China's gold buying has jumped after Lunar New Year
While India's jewelry demand is cooling off, China's gold buying has jumped after Lunar New Year.
Premiums there have flipped from an $8 discount to a $12-$13 premium per ounce—showing strong investment interest even as Indian buyers wait things out.