Physical gold demand across top Asian hubs was largely muted this week as a rebound in domestic prices kept buyers at bay, while dealers in India pinned their hopes on an upcoming festival season to bring in more customers.
Local gold futures were trading around Rs 47,100 per 10 grams on Friday, recovering from a four-month low of Rs 45,662 touched last month.
As a result, retail demand was quite weak across the country for the last few days as prices were going up. Dealers charged premiums of up to $2 an ounce over official domestic prices, inclusive of 10.75% import and 3% sales levies, unchanged from last week.
With the festival season approaching, jewellers could start purchases if prices remain stable for the next few days.