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Asia Gold-India demand slows, Lunar New Year fuels interest in other centers

Gold discount rates in India increased this week as consumers avoided purchasing as local costs struck a month's. high, whereas the upcoming Lunar New Year festival promoted. gold buying activity in other significant Asian markets.

Indian dealers offered a discount rate << XAU-IN-PREM > of as much as $17. an ounce to official domestic prices, inclusive of 6% import and. 3% sales levies, up from the last week's discount rate of $14 an. ounce.

Rates are high, so purchasers are holding off on purchases. Anyhow, the inauspicious Khar Mass (month in Hindu calendar) is. still going on, an Ahmedabad-based jeweller said.

In India, domestic prices increased to 78,360. ($ 912.41) rupees per 10 grams on Friday after being up to 75,459. rupees last month.

Jewellers were on the sidelines due to volatility in the. Indian rupee and overseas gold costs, said a Mumbai-based. bullion dealership with a private bank.

The rupee diminished to a record low today, successfully. making shipments pricey for India, which fulfils most of its. need through imports.

International spot gold prices struck four-week highs this. week.

In China, the world's leading gold customer, dealers priced quote. discounts of $2 per ounce to $9 premium on spot rates,. below the premiums of $4.50 to $10 charged last week. << XAU-CN-PREM >

The Year of the Snake approaches, probably an auspicious. year and a best background for more gold purchases,. independent analyst Ross Norman said.

Chinese financiers will be motivated by news that the PBoC. have actually included gold to its reserves for the second month in a row,. which may suggest the existing price reflects reasonable value.

In Singapore, dealers charged par level to $2.50 premium. In. Hong Kong, gold << XAU-HK-PREM > was cost a $0.30 discount rate to a. premium of $2.

Lunar New Year is showing up, so we also see some wholesale. ( need) getting in terms of gold bars, said Brian Lan,. handling director at Singapore-based GoldSilver Central.

In Japan, bullion was offered << XAU-TK-PREM > from a discount of. $ 0.5 to a premium of $0.5.

(source: Reuters)