Yeah, looks like few Indians is buying at these prices. Although the wedding season has just begun but that is where Indians are smart because they need jwellery to show but not to use. They can do it with some old from the family.
Physical gold demand in India remained subdued this week as volatile prices deterred buyers from making purchases and prompted dealers to offer steep discounts to lure them, while demand cooled in China on changing tax regulations.
Indian dealers were offering a discount of up to $14 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, up from the last week's discount of up to $12.
I was approached by a Goldsmith recently with about 10% discount, which we denied and said we would only buy below Rupees 100k.
And China demand fading for the yellow metal definitely means that Gold will be down 20% from here.