International rates dropped to 2month low this week
India premiums jump to 16oz versus 3 last week
Physical demand in China remains subdued

Nov 15 Reuters Physical gold premiums in India climbed to a near fourmonth high this week, driven by a rebound in demand as prices dropped, while top consumer China saw limited retail buying interest.

Domestic prices in India fell to 73,300 rupees per 10 grams earlier this week after hitting a record high of 79,775 rupees last month.

Buyers were holding off for prices to drop, but once they did, retail buyers jumped in and started buying, said a Hyderabadbased jeweller.

Indian dealers this week charged a premium of up to 16 an ounce over official domestic prices inclusive of 6 import and 3 sales levies, from a premium of 3 last week. Higher premiums indicate an increase in retail demand.

Jewellers were replenishing inventories after good sales during Dhanteras and Diwali festivals, said a Mumbaibased jeweller.

International spot gold prices were set to post their worst week in more than three years, after prices dropped to 2month low on Thursday.

Despite gold trading significantly below its record high, a shift toward precious metals in China has not been noticed yet, said Hugo Pascal, a precious metals trader at InProved.

Dealers in China, the world39;s top consumer of the metal, offered discounts between 1013 compared with last week39;s 1517 discounts .

On the retail side, physical demand in China remains subdued amid…