“Price volatility has slowed demand, and some investors are cashing in by selling coins they bought earlier for a profit,” said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.
Domestic prices have cooled from record highs earlier this month, prompting traders to curb fresh stock purchases ahead of the November wedding season.
China, Singapore See Renewed Interest
Meanwhile, demand in China—the world’s largest gold consumer—showed renewed strength. Bullion traded at par to a $4 premium over international spot rates, up from last week’s volatile range between a $20 discount and an $8 premium.
The rebound to a pullback in global yields and a weaker dollar, which have slightly lifted appetite for precious metals in the broader Asian market.
Singapore and Hong Kong also reported higher premiums, suggesting resilient institutional demand despite global macro uncertainty. “The recent stabilization in rates has brought back some long-term buyers who were sitting on the sidelines,” said a metals trader based in Singapore.
Market Outlook Hinges on Fed and Rate Expectations
Markets are now pricing a 74.8% probability of a 25-basis-point rate cut by the Federal Reserve in December, down from 91.1% a week earlier, according to the CME FedWatch tool.