High gold prices hit demand across major Asian hubs.

Gold demand was subdued across major Asian markets this week, as high prices curbed retail buying even as India entered its wedding season, while in China, the removal of a tax exemption on gold purchases dented consumer appetite.

This week, Indian dealers were offering a discount of up to US$18 (RM74.35) per ounce over official domestic prices — inclusive of 6% import and 3% sales levies — narrower than last week’s discount of up to US$21.

Domestic gold prices were trading around 126,100 rupees (RM5,820.69) per 10 grams on Friday, up 4.4% from last week’s low of 120,762 rupees.

“Buyers are uneasy with the current high prices, waiting for a correction, which has kept demand very weak,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Jewellers are also holding off on building stocks for the ongoing wedding season, as footfalls at their stores have dropped sharply after surging during the Diwali festival, said a Mumbai-based bullion dealer with a private bank.