High Gold Prices Curb Asian Jewelry Demand as Dealer Premiums Collapse
Gold prices near record highs are discouraging jewelry purchases in Asia, with Indian dealer premiums falling sharply. Despite renewed interest in China, demand remains weak due to prices exceeding $4,000 per ounce.
Insights:
Gold prices hovering near record highs have led to a significant contraction in physical gold purchases across Asia's major consumer markets. In India, dealer premiums have plummeted from $15 to $6 per ounce as retail buyers delay jewelry purchases amid soaring prices. This trend is evident despite renewed post-holiday interest in China, where bullion traded at premiums as high as $21 per ounce, up from $3 the previous week.
