By Rajendra Jadhav and Brijesh Patel
(Reuters) -Physical gold demand across major Asian markets remained weak this week, as volatility in rates deterred potential buyers from making purchases.
This week, Indian dealers were offering a discount of up to $21 per ounce compared with official domestic prices, including 6% import and 3% sales levies, down from a discount of up to $43 last week, which was the highest in five months.
Domestic gold prices were trading around 122,500 rupees per 10 grams on Friday, down 4.3% from 127,941 rupees last week.
“After last week’s rally, prices started dipping this week, and it has thrown buyers off. Now everyone’s just waiting to see if they fall even more,” said a Kolkata-based jeweller.
The wedding season has begun, but jewellers are seeing weaker-than-usual demand as the price rally keeps buyers away, prompting them to avoid building inventory, said a Mumbai-based bullion dealer with a private bank.
Weddings are a major driver of gold purchases in India, with bullion in the form of jewellery forming a crucial part of a bride’s attire and a popular gift from family and guests.
In top consumer China, bullion traded at prices ranging from at par to a discount of $5 an ounce compared with the global benchmark spot price.
“People are still looking to buy gold as a long-term investment, but are hesitant to purchase at these price levels and are waiting for bigger correction to enter the market,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
Swiss gold exports in October fell about 11% from the previous month, customs data showed on Thursday, as elevated prices squeezed Chinese demand.
In Singapore, gold traded between a $1.50 and $2.50 premium this week. Gold in Hong Kong was sold at par to a premium of $1.80.
In Japan, bullion was sold at par to a premium of $0.50 per ounce over spot prices.
(Reporting by Brijesh Patel in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Sherry Jacob-Phillips)
