Page 29 - Bullion World Volume 5 Issue 06 June 2025

Bullion World | Volume 5 | Issue 06 | June 2025
Bullion World | Volume 5 | Issue 06 | June 2025
Asia’s Gold Kilobar Markets bars—favoured for their lower premiums—with buy-
Singapore, primarily a demand hub for freshly minted back prices dropping to a steep discount of $11.25/oz,
gold bars due to an exemption from Goods and indicating aggressive buying activity among Chinese
Services Tax (GST) on bars that meet certain purity investors. This demand likely contributed to further
standards and are traded within the freeport, saw a upward pressure on gold prices. Similar to the Thai
surge in demand for gold kilobars when trade tensions market, strong buying interest was recorded when gold
between the US and China escalated. Freshly minted prices fell sharply from $3,500/oz to around $3,300/
kilobars in Singapore typically trade at a premium of oz, helping to provide price support. However, from
$1.50–$2.00/oz over international prices, but premiums late April through mid-May, investor sentiment in Hong
spiked to a peak of $3.15/oz in February. This sharp Kong shifted, leading to increased selling activity.
increase widened price differentials between Asian
markets until March. Impact on Chinese gold market
Chinese gold traded at premium to international prices
Bangkok exhibited trends similar to Singapore, albeit throughout April and May, supported by haven demand
with greater volatility—except in March, when the despite higher domestic gold prices. The premium
two markets diverged. During March, premiums in reached an 18-month high of USD 104.65/oz on
Singapore declined while those in Bangkok rose, as April 22, following China’s stern warning to countries
climbing gold prices continued to attract investors considering trade agreements with the US that
amid broader market turmoil. The recirculated undermine its economic interests, fuelling concerns
kilobar market in Bangkok also showed high volatility, of a broader trade war. The premium has since fallen
when strong demand pushed buy-back prices for to ~USD 40/oz as China and the US scaled back their
recirculated bars to trade at a discount ranging from counter-tariff measures, including suspending curbs on
$3.50/oz to $4.00/oz. This was indicative of robust select export goods.
buying interest in the market, before prices stabilised at
a discount of around $3.50/oz. From April through May, Impact on India gold market
the market shifted to strong selling interest, with asking Indian consumers are highly price-sensitive, which
prices trading at approximately $1.00/oz over spot. kept many on the sidelines in Q1 as gold surged
amid escalating trade tensions. Buyers only returned
Hong Kong, a market that also serves as a conduit to during price dips, causing gold to trade at a discount
China, experienced strong volatility amid escalating to international prices in most sessions. In late April,
US-China trade tensions. Unlike Singapore and during the India-Pakistan conflict, prices jumped
Bangkok, which showed relatively strong demand for past ₹100,000/10g as investors sought safe-haven
freshly minted bars in February, premiums in Hong assets. After the conflict was resolved in early May,
Kong dipped significantly before rebounding. This international prices fell more sharply than domestic
mirrored movements in Shanghai gold premiums, rates, pushing domestic gold to a premium by mid-
which traded at a discount from early to mid-February. May.
During this period, investors turned to recirculated

Conclusion
Trump’s tariff policies have reinforced gold’s status as a safe-haven asset, with the
precious metal being the best-performing asset class in 2025 so far, outpacing equities
and other commodities. For Asian countries with a strong affinity for bullion, fluctuations
in gold prices significantly influence local buying behaviour, presenting tremendous
opportunities to those with access to the necessary market insights.

To stay informed about the latest regional gold price movements and premiums for freshly
minted and recirculated bars, visit www.kallindex.com/gold or reach out to us at info@
kallindex.com!

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