- India dealers offer up to $75/oz discount vs $83 last week
- Festive retail buying much lower than usual- Indian jeweller
- Chinese premiums ease to $10-$22/oz
- Spot gold prices down over 10% since U.S.-Israel strikes on Iran
March 20 (Reuters) - Gold discounts in India eased this week from near decade-high levels hit last week, helped by festive buying and a sharp correction in prices, while premiums in China declined as physical demand softened.
Bullion dealers in India this week offered discounts of of up to $75 per ounce over official domestic gold prices – inclusive of 6% import and 3% sales levies, down from discounts of up to $83 last week, the highest since July 2016.
"Retail buying picked up due to Gudi Padwa and Ugadi festivals, but it was still much lower than usual," said a Mumbai-based jeweller.
The festivals were celebrated earlier this week, mainly in India's western and southern parts, when buying gold is considered auspicious.
Global benchmark spot gold prices have fallen more than 10% since the U.S.-Israeli war on Iran started on February 28, pressured by a stronger dollar, which has emerged as one of the clearest safe-haven winners.
However, demand from Indian jewellers remained muted despite the sharp price correction as they were busy closing their books for the financial year, said a Mumbai-based dealer with a private bank.
In top consumer China, bullion traded at premiums of $10-$22 an ounce over global benchmark prices this week, lower than last week's $20-$30 premium.
Shanghai premiums dropped sharply this week, signaling that immediate buying pressure has eased and physical demand is cooling in the short term, said Bernard Sin, regional director of Greater China at MKS PAMP.
"Despite this, the underlying drivers of resilience remain intact: the PBOC continues its steady reserve accumulation, cultural affinity for gold persists and supply controls keep the market structurally tight."
In Hong Kong, physical gold traded at par to premiums of $1.70, while in Japan , gold was sold at a premium of $1.
In Singapore , gold was traded at premiums of $0.50 to $2.50, versus premiums of $0.50 to $2 last week.
($1 = 93.16 Indian rupees)
Reporting by Noel John in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Sonia Cheema
Source: Reuters