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ASIA GOLD - Record rally stops retail purchases in India, China demand stable

The gold demand in India was muted as prices hit record highs, reducing the appeal of retail purchases. In China, bullion trades at a premium as demand remains steady before the Lunar New Year.

Indian dealers offer a discount This week, official domestic prices will be up to $12 an ounce, including 6% import and 3% sales taxes, compared to the previous week's up to $6.

On Friday, domestic gold prices were trading at around 142.800 rupees per 10 grams, which is not far off the record high reached earlier this week of 143.590 rupees.

Chirag Thakkar is the CEO of Amrapali Group Gujarat, a bullion importer.

"Most people are buying gold exchange-traded funds, with only a small amount of interest in bars and coins. "Jewellery demand is dead," said a Mumbai bullion dealer from a private bank.

Bullion prices in China's top consumer range from discounts as high as $12 per ounce up to premiums of over $3 an ounce compared to the global benchmark. This week. Last week, premiums were as high as $11.

"China is heading into the Chinese New Year and despite record prices, the gold price remains modest (which is surprising)," said independent analyst Ross Norman.

In Singapore Gold was sold for prices that ranged from a discount of $0.20 to a premium up to $2 per ounce.

In Hong Kong, gold In Japan, gold bullion is traded at a premium of $4 per ounce, while it is sold at par. The same as last time, the product was sold with a discount of $6 or a premium of $1.

The benchmark gold price for international trade was headed to a weekly increase after reaching a record-high of $4,642.72/ounce last Wednesday.

Norman stated that the market is still hot, from both a retail and physical perspective. This applies to China, Europe, or even Australasia. ($1 = 90.6610 Indian rupees) (Reporting by Ishaan Arora in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Subhranshu Sahu)

(source: Reuters)