Sales of coins and bars picked up last weekend Indian dealer
India dealers offering 3oz discount versus 4 last week
China premiums rise to 4358 per ounce range

Nov 17 Reuters Indian buyers brushed off record high local prices this week making gold purchases during the Diwali festival week in the country, while China premiums remained buoyant after the topbuyer continued to accumulate gold holdings.

Demand improved gradually this week. It was as good as last year despite record high prices, said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the eastern Indian city of Kolkata.

Local gold prices were trading around 60,900 rupees731.81 per 10 grams on Friday after hitting an alltime high of 61,914 rupees744.00this week.

Sales of coins and bars picked up from the last weekend, while demand for jewellery also improved, said a Mumbaibased bullion dealer with a private bank.

Dealers were offering a discount of up to 3 an ounce over official domestic prices inclusive of the 15 import and 3 sales levies, down from the last week39;s discount of 4.

In China, dealers charged premiums of 4358 per ounce over global spot prices , up from last week39;s 4050.1.

In October, China extended its 12month streak of increasing gold holdings, providing crucial support to physical premiums, said Bernard Sin, regional director of Greater China at MKS PAMP.

With no recent issuance of import quotas, the expectation is for gold premiums to remain at the current level…