Indian gold premiums plunge as Chinese demand rises ahead of Lunar New Year
Indian gold premiums fell as price volatility deterred buyers while demand in China rose before the Lunar New Year. Prices cooled after the recent union budget.
Insights:
Gold premiums in India 
IN more than halved from decadal highs this week as significant price volatility deterred retail buyers, while a price pullback in China 
CN lifted physical demand ahead of the Lunar New Year. The rapid re-pricing in the Indian market saw premiums drop from a decadal peak of $153 per ounce to approximately $70 per ounce. These moves have significantly altered local premiums and reflect shifting retail and investment demand across key Asian bullion markets.
IN more than halved from decadal highs this week as significant price volatility deterred retail buyers, while a price pullback in China CN lifted physical demand ahead of the Lunar New Year. The rapid re-pricing in the Indian market saw premiums drop from a decadal peak of $153 per ounce to approximately $70 per ounce. These moves have significantly altered local premiums and reflect shifting retail and investment demand across key Asian bullion markets.The change in India IN follows the presentation of the Union Budget 2026/27 (Government of India) on February 1, which left import duties on gold unchanged. This policy stability, combined with recent price swings, led bullion dealers and bullion importing banks to observe a cooling in consumer interest. Soni Kumari soni kumari, a commodity strategist at ANZ Group Holdings Limited , noted that the volatility has been a primary driver in discouraging immediate purchases despite the premiums falling from their recent highs.
IN follows the presentation of the Union Budget 2026/27 (Government of India) on February 1, which left import duties on gold unchanged. This policy stability, combined with recent price swings, led bullion dealers and bullion importing banks to observe a cooling in consumer interest. Soni Kumari soni kumari, a commodity strategist at ANZ Group Holdings Limited , noted that the volatility has been a primary driver in discouraging immediate purchases despite the premiums falling from their recent highs.
