Gold prices in India experienced a notable decline today, with 24-carat gold dropping by ₹1,530 per 10 grams to ₹153,060 and 22-carat gold falling by ₹1,401 to ₹140,203. The 18-carat gold rate stands at ₹114,800 for 10 grams, down by ₹1,148 from the previous day. This latest movement comes after Indian gold dealers had started charging premiums for the first time in two months, marking a significant shift in market dynamics. According to The Hindu BusinessLine, dealers had quoted discounts of up to $8 per ounce and premiums of $2 per ounce over official domestic prices this week, inclusive of 6% import and 3% sales levies, compared with discounts of up to $61 last week. Domestic gold prices had been trading around ₹146,700 per 10 grams on Thursday, after rising to ₹151,326 earlier this week and reaching a record high of ₹180,779 in late January.
Gold prices show significant regional variations across different Indian states, with Kerala's 22-carat gold priced at ₹13,885 per gram and 24-carat at ₹14,579 per gram according to latest market data. The price differential reflects local market conditions, tax structures, and demand patterns across different regions. Delhi's gold market demonstrates unique pricing characteristics with 24-carat gold at ₹156,585 per 10 grams, 22-carat at ₹143,431, and 18-carat at ₹117,439. The central government charges a 6% customs duty on all gold imports (5% Basic Customs Duty and 1% AIDC) plus a 3% GST at the point of sale, which are mandatory charges that jewellers cannot waive. Delhi's pricing advantage stems from its massive catchment area, including the city's substantial middle class, established business communities, and significant diplomatic and government population, along with constant flow of buyers from neighboring states.
The premium recovery is being driven by improved market conditions and renewed buyer interest. As reported by The Hindu BusinessLine, Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji, noted that "Falling prices are helping bring back buyers. Retail buying and jewellers' purchases were stronger this week than last week." Scrap supplies have declined in recent weeks, prompting jewellers to buy from banks, though volatile prices and the rupee are keeping purchases relatively small, according to a Mumbai-based bullion dealer with a private bank. The current price decline may reflect market consolidation following the recent premium recovery period, with Delhi's market showing particular resilience due to its consistent demand patterns and established buyer base.
China's gold market showed mixed signals with premiums declining slightly from the previous week. According to The Hindu BusinessLine, bullion traded at premiums of $12-$17 per ounce over the global benchmark price this week, down from $14-$18 last week. Peter Fung, head of dealing at Wing Fung Precious Metals, indicated that "The demand for physical gold is steady as gold swings between $4,400 and $4,700. When the market goes down to about $4,200, we could see some increase in demand." The current international price movements may be influencing domestic market trends, with global gold trading at par to premiums of $1.80 in Hong Kong and at par with spot prices in Japan. Delhi's market benefits from its proximity to international trading centers and its ability to absorb global price movements quickly.
Despite current challenges, market analysts remain cautiously optimistic about recovery prospects. According to Metals Focus, gold jewellery sales remained soft in the immediate post-Chinese New Year period but have begun a moderate recovery, supported by low inventory levels and restocking demand following price corrections. Investment flows cooled down in the last two months of March after a solid start in the first two months of the year, though the overall trend suggests gradual improvement in market sentiment. Delhi's market shows particular strength in digital gold adoption, driven by the city's large base of salaried professionals and younger buyers who prefer building gold holdings gradually without making charges. Platforms like Groww, Paytm, and PhonePe allow starting with as little as ₹1 in 24K gold, reflecting the city's sophisticated investment culture and technological adoption in gold trading.
