India discounts narrow to 18oz
Local prices in India ease from record

Feb 10 Reuters Physical gold buyers in some Asian hubs were drawn to a dip in domestic prices this week, while central bank demand kept premiums firm in China.

Local gold prices in India hit as low as 56,496 rupees per 10 grams from an alltime high of 58,826 rupees climbed last week.

Demand from jewelers and retail consumers has improved because of the price correction, said Ashok Jain, proprietor of Mumbaibased gold wholesaler Chenaji Narsinghji.

Dealers offered discounts of up to 18 an ounce over official domestic prices inclusive of 15 import and 3 sales levies down from last week39;s 48 discount.

After two months, there39;s some momentum in the market. Many buyers who postponed purchases hoping for a reduction in the import duty will start purchases if prices fall further, a Mumbaibased dealer with a private bank said.

India did not slash the import duty on gold in its annual budget presented on Feb. 1, despite demands from the bullion industry, but instead raised the duty on silver.

Dealers in top consumer China raised premiums to 1215 an ounce over global benchmark spot prices , from 1015 last week.

Demand from retail is starting to slow. However, China will continue adding gold into the basket of reserves, perhaps to defend the RMB, said Bernard Sin, regional director, Greater China at MKS PAMP.

The value of China39;s gold reserves rose to 125.28 billion at endJanuary, from…