Gold premiums in India have climbed to the highest levels since 2014, with premiums at around $121 per ounce — driven by strong investment demand ahead of the Union Budget 2026–27 and speculation about potential changes in import duties. Despite international gold prices remaining high and retail jewellery demand softening due to price volatility, investors have shown increased interest in bullion as a hedge against market and currency uncertainties.
The surge in premiums reflects broader financial sentiment, where traditional safe-haven assets like gold attract attention during periods of macroeconomic change and policy uncertainty. While domestic jewellery purchases have faced pressure, especially with falling rupee trends, physical investment demand continues to underpin the gold market — signaling nuanced behaviour in India’s financial landscape.
