Gold demand in India stayed subdued this week as buyers held back purchases in anticipation of lower prices, while premiums in China remained steady, supported by robust investment demand.

Domestic gold prices traded around 153 000 rupees ($1 597.74) per 10 grams on Friday, after falling to 149 771 rupees earlier this week.

"Jewellery demand is very weak. Retail buyers are not keen to buy at current price levels and are waiting for a correction," said a Hyderabad-based jeweller.

Dealers quoted a discount of up to $60 an ounce over official domestic prices this week, inclusive of 15% import and 3% sales levies, compared to last week's discount of up to $75.

Jewellers are not buying new gold because they are getting enough scrap from customers exchanging old jewellery for new pieces, said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

"The festival season is approaching, but jewellers are still not stocking much as demand remains weak," Jain said.

Indians will celebrate Dussehra in October and Diwali in early November, when buying gold is considered auspicious.

In China, bullion traded at a premium of $5 an ounce to the global benchmark price, compared with $8 last week.

"Gold in China is still trading just north of the international price, but that doesn't suggest lackluster demand. What that suggests is two strong, countervailing ties: strong investment demand but very weak demand in jewellery," said independent analyst Ross Norman.

China's central bank stepped up its gold purchases for a sixth straight month in August, adding the most bullion to its reserves since October 2023 and extending its buying streak to 22 consecutive months, official data showed on Monday.

In Singapore, gold traded between a $0.50 discount and a $1.60 premium this week, while in Hong Kong it traded between a $0.50 discount and a $1.70 premium.

Meanwhile, in Japan, gold traded between a $0.25 discount and a $0.5 premium.

International spot gold prices were largely steady for the week, with the metal falling to a six-week low on Wednesday after the US Federal Reserve raised interest rates for the first time in more than three years.