Local gold futures were trading at around 47,100 rupees per 10 grams on Friday, recovering from a four-month low of 45,662 rupees reached last month.
As a result, retail demand has been quite weak across the country in recent days as prices have risen, said a Mumbai-based bullion trader with a private bank.
Dealers have charged premiums of up to $ 2 an ounce over official domestic prices – including 10.75% import taxes and 3% sales taxes – unchanged from last week.
“The festival season is approaching. Jewelers could start buying if prices remain stable over the next few days,” said another Mumbai-based bullion dealer.
In China, premiums have narrowed slightly to $ 1-5 an ounce against global benchmark spot prices, compared to premiums of $ 3-6 last week.
“Demand in China remains subdued as customers wait for prices to drop,” said Peter Fung, head of transactions at Wing Fung Precious Metals.
In Hong Kong, premiums of $ 0.80 to $ 1.80 have been charged as the increase in COVID-19 cases and the resulting lockdowns have hurt demand for jewelry.
In Singapore, premiums ranged from $ 1 to $ 1.50 an ounce, and according to Brian Lan, managing director of GoldSilver Central dealership, customers took advantage of the higher prices to sell more gold.
In Japan, gold premiums have remained in a range of $ 0.25 to $ 0.50, Tokyo-based traders said.
Meanwhile, the Bangladesh Jewelers Association raised local rates on all types of gold, citing gains in international markets, with the highest quality gold priced at 73,483 taka ($ 864.71) per Bhori, or 11, 664 grams.
There was also a shortage of supply in local markets as imports were hampered by fiscal complexities and the stoppage of international flights.