Indian jewellers unsure about festive demand dealer
India domestic prices jumped to a record high last week
Japanese dealers offer 0.25 discount to 1 premium this week

Oct 4 Reuters Gold demand in India improved slightly this week due to an upcoming festival but remained lower than usual because of recordhigh prices, while Chinese markets were closed for a holiday.

With the Dussehra festival coming up, retail demand is starting to pick up, but it39;s still much lower than usual. The recordhigh prices are causing a lot of shoppers to hold off on making purchases, said a Kolkatabased jeweller.

Indians will celebrate Dussehra on Oct. 12, when buying gold is considered auspicious.

Indian dealers offered discounts of up to 21 an ounce this week over official domestic prices, inclusive of 6 import and 3 sales levies, up from the last weeks discount of 19.

Domestic prices jumped to a record high of 76,000 rupees per 10 grams last week, an increase of nearly 13 from a fourmonth low of 67,400 rupees reached on July 25.

Jewellers are not confident about demand during the festive season and are taking it slow on building up stock, said a Mumbaibased bullion dealer with a private bank.

Chinese markets were closed for the Golden Week holiday. Gold discounts in the top consumer widened last week to 167 as demand continued to remain weak.

In Hong Kong, gold was sold between a 2 discount and 2 premium .

There hasn39;t been any special interest in physical gold in Hong Kong…