Gold was sold at a discount this week in India for the first time in seven weeks, as demand slowed after key festivals, while premiums ticked higher in other top Asian hubs following a pullback in global rates that lifted activity.

Indian dealers offered a discount of up to $12 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's premium of up to $25.

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"Price volatility has slowed demand, and some investors are cashing in by selling coins they bought for a profit," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Domestic gold prices fell to around 121,500 rupees per 10 grams after hitting a record high of 132,294 rupees earlier this month.

Meanwhile, global spot gold prices were on track for their second weekly fall.

The Dhanteras and Diwali festivals over the last eight weeks were when buying gold was considered auspicious and among the busiest gold-buying days in the country.

Jewellers have seen a sharp drop in footfalls after the festival rush, prompting them to slow down on building stocks for the wedding season (in November), said a Mumbai-based dealer with a private bank.

In top consumer China, bullion traded at par to a $4 premium an ounce over the global benchmark spot price . Last week, bullion changed hands anywhere between a discount of $20 and a premium of $8 an ounce.

In Singapore , gold traded between at par and a $3 premium. Gold in Hong Kong was sold at par to a premium of $1.6.

"We've seen investors coming to buy, especially when prices came down this week," said Brian Lan, managing director at Singapore-based GoldSilver Central.

In Japan, gold was sold at a $1 premium over spot prices.

Courtesy : Reuters