Lower prices and festival timing lifted physical buying in India and China after gold slipped below $4,000 an ounce.
MoneyTurkey Commodities Desk | 6 November 2026
Key points
- Indian domestic gold prices fell to 137,863 rupees per 10 grams, the lowest level since 24 March, before recovering to around 141,600 rupees on Friday.
- International spot gold printed a one-year low of $3,869.85 an ounce on 30 October; dealers reported premiums of up to $4 an ounce in India and up to $9 in China.
Physical gold demand picked up in major Asian hubs this week as lower prices encouraged Indian retail buying ahead of Diwali and drew Chinese buyers back after the global benchmark slipped below $4,000 an ounce. In India, domestic prices were trading around 141,600 rupees per 10 grams on Friday after falling to 137,863 rupees, the lowest since 24 March. Dealers quoted a premium of up to $4 an ounce over official domestic prices this week, inclusive of 15% import and 3% sales levies, down from last week’s premium of up to $7. International spot gold remained under pressure after the $3,869.85 one-year low on 30 October.
What happened
Jewellery stores in India saw heavier footfall as shoppers bought ahead of Diwali. Retail buying improved this week, according to a Mumbai-based bullion dealer with a private bank, though price swings still capped a sharper rebound. Buying was expected to firm on Friday for Dhanteras, which opens the five-day festival of lights and is one of the busiest gold-buying days in the world’s second-biggest consumer of the metal.
In China, bullion traded from flat to a $9-an-ounce premium over the global benchmark. Rhona O’Connell, head of market analysis at StoneX, said jewellery interest had improved from a very low base once prices moved back below $4,000. Elsewhere in Asia, Singapore gold traded between a $1 discount and a $1.70 premium this week, Hong Kong between a 50-cent discount and a $1.80 premium, and Japan between a $6 discount and a 50-cent premium.
What is driving prices
International spot gold stayed under pressure after the late-October one-year low, with elevated energy costs feeding the case for tighter financial conditions that weigh on non-yielding bullion. Festival calendars in India and a cheaper absolute price pulled physical buyers back even as paper markets chopped around the $4,000 area. U.S. labour and inflation prints remain the near-term swing factors for whether the rebound in physical premiums holds.
Why it matters
Dhanteras is among the busiest gold-buying sessions in India. Dealers expect festival demand to support physical premiums into the holiday window, but volatility still limits how far retail volumes can run. The same price dip that hurt paper marks brought Chinese jewellery interest back from a low base, a reminder that Asia’s physical bid still matters when bullion breaks key round-number levels.
What to watch
- Friday Dhanteras buying volumes in India
- Premium movement in China and India
- Oil and U.S. data impact on rate expectations
- Whether spot gold holds above the late-October low
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For information only. Not investment advice.
Sources
- Reuters via Economic Times BFSI (Asia physical hubs, Sukanya Mitra and Rajendra Jadhav; published 6 November 2026, 12:23 PM IST): Price dip lights up gold buying in India ahead of Diwali
- Mining.com syndication of the same Reuters Asia physical wire: Price dip lights up gold buying in India ahead of Diwali
- Reuters India Dhanteras wire (Rajendra Jadhav; MarketScreener reprint, Mumbai dateline 6 November 2026): India’s gold demand picks up as Diwali coincides with price dip
- Moneycontrol / IBJA: Dhanteras buyers may purchase 7-8 grams of gold (6 November 2026)
- StoneX via Reuters Asia physical wire (Rhona O’Connell on China jewellery interest)
