Gold: India flips to discount after festivals; premiums rise elsewhere as prices ease

Gold was sold at a discount this week in India for the first time in seven weeks, as demand slowed after key festivals, while premiums ticked higher in other top Asian hubs following a pullback in global rates that lifted activity.

Indian dealers offered a discount of up to $12 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's premium of up to $25.

"Price volatility has slowed demand, and some investors are cashing in by selling coins they bought for a profit," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.




The Dhanteras and Diwali festivals over the last eight weeks were when buying gold was considered auspicious and among the busiest gold-buying days in the country.

Jewellers have seen a sharp drop in footfalls after the festival rush, prompting them to slow down on building stocks for the wedding season (in November), said a Mumbai-based dealer with a private bank.

In top consumer China, bullion traded at par to a $4 premium an ounce over the global benchmark spot price . Last week, bullion changed hands anywhere between a discount of $20 and a premium of $8 an ounce.

In Singapore , gold traded between at par and a $3 premium. Gold in Hong Kong was sold at par to a premium of $1.6.

"We've seen investors coming to buy, especially when prices came down this week," said Brian Lan, managing director at Singapore-based GoldSilver Central.

In Japan, gold was sold at a $1 premium over spot prices.