Gold dealers in India were forced to offer discounts this week as a recent price increase dampened retail purchases, while demand also remained lacklustre in other key Asian hubs.

“Retail buying slowed because of price rise. Jewellers were reporting lower footfall this week,” a New Delhi-based dealer said.

In India, the world’s second-largest gold consumer and a major importer, domestic prices were ruling around 70,300 rupees per 10 grams on Friday, after hitting a four-month low of 67,400 rupees on July 25.

“Jewellery makers are hoping demand will improve during the peak festival season. They received decent orders from jewellers for festival season during the last week’s India International Jewellery Show,” a Mumbai-based bullion dealer said.

Indian dealers offered a discount of up to $3 an ounce over official domestic prices, – inclusive of 6% import and 3% sales levies - down from the previous week’s premium of $9.

In China, dealers were offering a discount of $8.5 to a $5 premium an ounce on international spot price. Premiums were as high as $18 last week.

Last week’s small bounce in Shanghai trading volume has been erased, said Hugo Pascal, precious metals trader at InProved.

Analysts and traders noted that Chinese demand for safe-haven bullion could pick up later this year, as economic and geopolitical uncertainties still persist.

In Singapore, bullion was sold between a discount of $0.75 to $2.2 premium per ounce.

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“Some wholesale dealers have bought gold in anticipation of higher prices, but overall demand has remained subdued,” said Brian Lan at Singapore-based dealer GoldSilver Central.

“I expect demand to increase in the last quarter, as we typically see more buying when jewellery manufacturers seek to replenish their stock.”

Meanwhile, in Japan, gold was sold at par and at $1 discount to $2 premiums in Hong Kong.