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Ernest Hoffman
Jan 3, 2026
(Kitco News) – After two months trading at a discount against the international spot price, gold is now trading at a premium in the world’s two top markets.
India and China saw prices flip to a premium this week after a pullback from all-time highs helped boost retail demand, which was restrained by December’s unprecedented price rally.
In India, dealers charged a premium of up to $15 per ounce over the official all-in domestic price this week – a major swing from last week’s discount of up to $61 per ounce.
In China, gold prices also flipped from last week’s discount to a premium of $3 per ounce above the global benchmark spot price after the sharp correction in gold prices contributed to renewed retail demand.
“It seems that (Chinese) retail demand remains relatively robust, and especially so if you consider where prices are just now,” independent analyst Ross Norman told Reuters. “Long and short, physical demand volume remains pretty robust...after a good correction in prices.”
Industry insiders in both markets say customers appear wary of jumping back into the market, however, due to the recent price volatility.
Peter Fung, head of dealing at Wing Fung Precious Metals, said the volatility has discouraged Chinese customers, depressing what were already very thin seasonal trading volumes.
It was a similar story in India. “Many buyers are holding off on purchases because prices are volatile and they're unsure which way the market is headed,” said a Mumbai-based bullion dealer.
In Singapore, gold prices ranged from a discount of $0.50 to a premium of $1.20 an ounce, while in Hong Kong, gold traded between par and a $1.70 premium. In Japan, gold was selling at par with the international benchmark.
Gold prices have continued their recent price volatility on Friday, with spot gold spiking to a session high $4,402.29 just after 8:15 am EST, before selling off all the way to $4,315.19 by 11:20 am.