India’s gold market has seen premiums climb to a 2.5-month high, driven by tight domestic supply and strengthening demand from China, according to market participants.
Dealers report that limited availability of refined gold in the domestic market, combined with stable to firm international prices, has pushed local premiums higher over benchmark global rates. Seasonal demand and restocking by jewellers have further tightened supply conditions.
At the same time, renewed buying interest from China has added pressure on global bullion flows, supporting price firmness across Asian markets. Traders note that competition for available supply has increased, particularly for physical shipments.
Despite higher prices, Indian jewellery demand remains steady in select segments, though overall volumes are sensitive to price movements. Analysts expect premiums to remain volatile in the near term, depending on import flows, currency trends, and festive-season demand patterns.