India39;s discount unchanged at 14 an ounce
Indian jewellers inactive due to weak investment demand dealer
China premiums jump to 4.5010 per ounce this week
Lunar New Year a strong period for physical gold demand

Jan 3 Reuters Gold discounts in India remained steady this week as elevated prices kept buyers away, while Chinese dealers charged higher premiums in anticipation of stronger demand ahead of the upcoming Chinese New Year.

Indian dealers offered a discount of up to 14 an ounce over official domestic prices, inclusive of 6 import and 3 sales levies, unchanged from last week.

Local gold prices have been rising more than global prices in the last few days due to the depreciation of the rupee to a record low. This has been dampening demand, said Ashok Jain, proprietor of Mumbaibased gold wholesaler Chenaji Narsinghji.

The Indian rupee depreciated to a record low this week, effectively making imports more expensive.

Domestic gold prices rose to 77,947 rupees per 10 grams on Friday, after falling to 75,459 rupees last month.

Jewellers were not active in the market since investment demand is weak. Many consumers also avoid buying gold during Khar Mass period, said a Mumbaibased dealer with a private bullion importing bank.

The Hindu month of Khar Mass is considered to be an inauspicious period to buy gold.

In China, the world39;s top gold consumer, dealers quoted premiums of 4.50 to 10 per ounce above spot prices , up from the 2 to 5 range last week….