Gold discounts widen in India

Physical gold discounts rose in India this week as buyers remained on the sidelines, while demand in Singapore and other Asian hubs ticked up as buyers took advantage of lower prices ahead of holidays.

Indian consumers avoided gold purchases due to Khar Mass, a period considered to be inauspicious that runs from Dec. 15 to Jan. 14.

"People are more focused on holidays than making big ticket purchases," said Mukesh Kothari, director at Mumbai gold dealer RiddiSiddhi Bullions, adding demand would remain subdued next week.

Dealers were offering a discount of $2 an ounce this week over official domestic prices, inclusive of 12.5 per cent import and 3 per cent sales levies, up from last week's $1.

Spot gold prices were set to mark their first weekly decline in four.

In China, discounts narrowed to $15-$20 an ounce, versus last week's $16-$20, while in Hong Kong, premiums of $0.50-$1.50 were being charged from last week's $0.50.