Jan 9 (Reuters) - Elevated prices further restricted physical gold buying in India this week, while dealers in China hiked premiums over international rates as retail interest renewed after the holiday period.
Indian dealers this week charged a premium of up to $6 per ounce over official domestic prices - inclusive of 6% import and 3% sales levies, below last week's premium of up to $15.
Domestic gold prices were trading around 138,000 rupees per 10 grams on the day, not far from the record high 140,465 rupees.
"Jewellery buying is being badly affected by rising prices. Retail buyers are postponing purchases," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
Jewellers were reporting very thin footfall and only marginal demand for coins and bars, said a Mumbai-based bullion dealer with a private bank.
In top consumer China, bullion traded at premiums as high as $21 an ounce above the global benchmark spot price this week. That compares with premiums of $3 an ounce charged last week.
"Physical gold demand in Asia has shown renewed strength this week, particularly in China and Hong Kong, reflecting tighter supply conditions and a resurgence of retail interest following the holiday period," said Bernard Sin, regional director, Greater China, MKS PAMP.
Chinese central bank's "accumulation continues to underpin the market, reinforcing the perception that Chinese demand is not only cyclical but also structural."
In Singapore , gold was sold at prices ranging at premiums of $1.20-$2.50 an ounce.
In Hong Kong, gold traded at premiums of $2-$3, while in Japan, bullion sold at discounts of $6 to a $1 premium.
International benchmark spot gold prices dipped on the day, but were headed for a weekly gain of more than 3%.
"We estimate that jewelry demand fell by double-digit levels in 2025 and we suspect there will be a tepid recovery at best in 2026 and 2027," HSBC analyst James Steel said.
"With prices above $4,000/oz, demand has eroded further," he added.
"Even a marked retracement in prices may not be sufficient to encourage significantly greater demand as the shift towards lighter items or substitution to platinum jewelry is likely to continue."