- Indian prices range from $4/oz discount to $14/oz premium - dealers
- Gold prices in India rise to highest in a month
- Indian banks halt gold and silver import orders from overseas
- China premiums steady at $3-$6/oz
April 17 (Reuters) - Gold demand in India was modest this week, as high domestic prices weighed on retail purchases ahead of the key Akshaya Tritiya festival weekend, while premiums in China held steady.
Dealers quoted discounts of up to $4 an ounce and though some quoted premiums of $14 an ounce over official domestic prices this week helped by festival-related demand, inclusive of 6% import and 3% sales levies, compared with last week's discounts of up to $6 an ounce and premiums of $9.
Domestic gold prices were trading around 153,200 rupees per 10 grams on Friday, after rising to 155,065 rupees earlier this week, the highest in a month.
"Retail demand is not picking up even as the Akshaya Tritiya festival approaches. Usually, retail buyers book gold in advance, but this year they are not very keen due to higher prices," said a Bengaluru-based jeweller.
Akshaya Tritiya, the second-biggest gold-buying festival after Dhanteras, when buying gold is considered auspicious, will be celebrated on April 19.
Indian banks have halted gold and silver import orders from overseas suppliers, with tons of the metals stuck at customs as a formal government order has not been issued authorising bullion imports, trade sources said.
In the absence of bank imports, premiums in India would typically have surged, but they are not rising sharply due to weak demand and selling from exchange-traded funds, said a Mumbai-based bullion dealer.
In top consumer China, bullion traded at premiums of $3 to $6 an ounce over the global benchmark price this week, little changed from last week's premiums of $3 to $5.
"Chinese premiums have slipped to just $3 amid weak demand," said Bernard Sin, regional director of Greater China at MKS PAMP.
"Support now comes primarily from (China's) central bank buying, though reserve additions typically slow in the second quarter, limiting momentum."
In Hong Kong, physical gold traded at par to premiums of $2, while in Japan , gold was sold at par with spot prices.
In Singapore , gold was sold at premiums of $1 to $3, the same as last week.
Reporting by Pablo Sinha in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Ronojoy Mazumdar
Source: Reuters