Gold premiums in India jumped to their highest level in a decade this week, as the government’s move to cut import duties brought down prices to their lowest level in nearly four months, igniting a surge in demand.

In India, the world’s second-largest gold consumer and a major importer, dealers charged a premium of up to $20 an ounce over official domestic prices – their highest level since 2014 – inclusive of 6% import and 3% sales levies. Last week, they were offering a discount up of $65, the highest in 28 months.

Domestic prices in India were around 67,750 rupees per 10 grams on Friday, after hitting a record high of 74,777 rupees earlier this month.

“Gold prices have fallen sharply due to a reduction in duties and a correction in global prices. Many buyers who were waiting for this price drop are now entering the market,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the eastern Indian city of Kolkata.

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In top consumer China, dealers were offering a $10 discount to $2 premium an ounce on international spot prices, still hovering around a more than two-year low, per Reuters records. This is compared with discounts of up to $6 offered last week.

“The broader economic climate in China is impacting gold demand. With the stock market in a slump since January and investors losing faith in policy-driven recovery, there’s a growing expectation of profit-taking in gold”, which could lead to sustained selling pressure, said Bernard Sin, regional director of Greater China at MKS PAMP.

In Singapore, gold was sold at a discount of $1 to a premium of $2.20 per ounce, while in Hong Kong, it was between a discount of $1 to a premium of $1.20 per ounce.

Dealers in Japan sold gold at $3 discount to par, as overseas ETF inflows drove the price higher, Tokyo-based traders said.