India dealers charge premium of 1oz vs 5 premium last week
Strong gold demand expected for spring festival next week
China premiums ease to 1820oz this week
Japanese traders note modest gold demand during Golden Week

May 3 Reuters Physical gold demand in India remained subdued this week despite a slight correction in prices as buyers awaited an even bigger drop, while Chinese premiums slipped for the second straight week due to sluggish holiday demand.

In India, the world39;s secondlargest gold consumer and a major importer, domestic prices fell to around 70,500 rupees per 10 grams this week, after hitting a record high of 73,958 rupees last month.

Though prices are coming down, demand is not improving. Buyers have taken a pause. They think prices could fall sharply, considering the big price rally of the last two months, said Ashok Jain, proprietor of Mumbaibased gold wholesaler Chenaji Narsinghji.

Indian dealers charged a premium of up to 1 an ounce over official domestic prices inclusive of 15 import and 3 sales levies, versus last week39;s premium of 5.

Akshaya Tritiya, the secondbiggest goldbuying festival after Dhanteras, will be celebrated next week in India. If prices remain at this level or correct further, we could see good demand during the festival, said a Mumbaibased bullion dealer with a private bank.

In China, dealers charged premiums of 1820 per ounce over benchmark prices , down from the 2035 premiums seen last week.

Chinese markets are…