Gold buying picked up in India this week as lower prices during the major Dussehra festival boosted purchases and lifted premiums, while physical demand in top consumer China was steady even as cautious consumers continued to curb jewellery spending.
International spot gold prices were on track to record their steepest weekly loss since June on Friday, having hit its lowest level since July 20 at $3,986.50.
Indians celebrated Dussehra this week, one of the country's biggest gold-buying festivals.
"Retail sales saw a boost this week due to Dussehra, as many customers consider it auspicious to make at least a token purchase on this festive occasion," a Mumbai-based bullion dealer with a private bank said.
Dealers quoted premium of up to $9 an ounce over official domestic prices this week, inclusive of 15% import and 3% sales levies, compared with a premium of up to $7 last week.
"Demand typically surges during Dussehra, with jewellery stores packed with customers," said Chirag Thakkar, chief executive of bullion dealer Amrapali Group Gujarat.
However, Thakkar added that this year's festive demand remained well below last year's levels.
In China, bullion traded at premiums of $9 to $10 an ounce to the global benchmark price.
"While overall volumes are relatively light, the positive premium indicates that underlying appetite for physical gold remains intact," said Bernard Sin, regional director, Greater China, MKS PAMP.
The country's jewellery market remains weak due to low consumer confidence, which is weighing on jewellery demand, particularly among younger customers, said Rhona O'Connell, head of market analysis at Stone X.
China's gold jewellery demand has remained under pressure so far in 2026, recording its weakest first-half demand in tonnage terms since 2006, according to a recent World Gold Council report.
In Singapore , gold was sold between a $1 discount to a $2 premium this week, while it traded from a $0.5 discount to a $2.50 premium in Hong Kong .
In Japan , gold was sold between a $0.15 discount and a $0.50 premium.
