In a week marked by price volatility, old premiums in India fell by more than half from their decade-high levels, while demand was boosted in China by a retreat from record highs in the run-up to the Lunar New Year.
This week, the premium that bullion dealers charged over official domestic gold prices—which include 6% import and 3% sales levies—was as high as $70 (Dh257) per ounce, down from previous week’s $153 (Dh562) premium, which was the largest since December 2013.Expectations of an import duty hike in the budget lifted gold premiums last week, but they fell as demand slumped, said a Mumbai-based dealer with a bullion importing bank.
On February 1, the Union Budget for 2026/27 was unveiled by India’s Finance Minister, who chose to keep the tariff system unaltered.Gold prices in India touched a new high of 180,779 rupees per 10 kilos last week before falling as low as 133,687 rupees this week. On Friday, they traded at approximately 150,000 rupees per 10 grams. In China, bullion traded at a premium of $35 an ounce above the global benchmark spot price this week, up from last week’s $32 premium.
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