Indian consumers avoided gold purchases due to Khar Mass, a period considered to be inauspicious that runs from Dec. 15 to Jan. 14.
"People are more focused on holidays than making big ticket purchases," said Mukesh Kothari, director at Mumbai gold dealer RiddiSiddhi Bullions, adding demand would remain subdued next week.
Dealers were offering a discount of $2 an ounce this week over official domestic prices, inclusive of 12.5% import and 3% sales levies, up from last week's $1.
Spot gold prices were set to mark their first weekly decline in four.
In China, discounts narrowed to $15-$20 an ounce, versus last week's $16-$20, while in Hong Kong, premiums of $0.50-$1.50 were being charged from last week's $0.50.
Physical gold has traded at a discount since March in China, the world's biggest bullion consumer, as the coronavirus pandemic deterred buying.
Dealers said lower prices going into festivities and pent-up demand might boost consumption.
In Singapore, gold was being sold at a premium of $0.90-$1.20 an ounce over global benchmark prices, compared with $0.80-$1.30 last week, as demand picked up on gift buying ahead of Christmas, traders said.
However, the Southeast Asian island has lost out on tourist demand this year, having kept its borders largely shut for most of 2020 to curb the virus.
"With end-user demand originating from Indonesia and Malaysia in the last few years for the Singapore market, the sealed borders have limited the volumes," said Rahul Kedia, Director at Arihant Jewellers.
In Japan, gold was being offered at a $0.50 premium over benchmark prices.
(Reporting by Sumita Layek in Bengaluru and Rajendra Jadhav in Mumbai. Additional reporting by Diptendu Lahiri. Editing by Mark Potter)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.