India Gold Demand Dips; China Prices Climb Before New Year

Gold discounts in India remained steady this week as elevated prices kept buyers away, while Chinese dealers charged higher premiums in anticipation of stronger demand ahead of the upcoming Chinese New Year.

- Reuters

Indian dealers offered a discount of up to $14 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, unchanged from last week.

"Local gold prices have been rising more than global prices in the last few days due to the depreciation of the rupee to a record low. This has been dampening demand," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

The Indian rupee depreciated to a record low this week, effectively making imports more expensive.