India Gold Market Flips to Premium as Demand Improves and Supplies Tighten - LinkedIn

AI desk brief

India gold traded at a premium for the first time in three months, with dealers quoting as much as $7/oz over domestic spot versus $5-$6/oz discounts the prior week. The flip reflects tighter supply and firmer buying as prices fell to ₹145,538 per 10 grams in early October, drawing buyers into the festive season ahead of Navratri, Dhanteras and Diwali.

On the supply side, Indian gold imports fell 45% in August and dropped again in September, while the government’s May duty hike lifted import taxes on gold and silver from 6% to 15%. The article says the move is helping curb imports and support the rupee, but is also creating domestic shortages and may encourage a recovery in unofficial flows if higher duties persist.