MUMBAI: Retail demand for physical gold picked up slightly in India this week on a dip in domestic prices and a festival, but top bullion hubs across Asia saw muted activity.
Local gold futures in India have retreated to about 50,875 rupees ($695.04) per 10 grams, an over 9% fall from a record 56,191 rupees last month.
Demand usually picks up in the state of Kerala during the festival of Onam, which was celebrated earlier this week.
However, "this year, Onam sales were far less than usual. The slowdown in the economy has reduced consumers' purchasing power," said B Govindan, chairman of Kochi-based Bhima Jewellery.
Dealers offered discounts of up to $40 an ounce over official domestic prices, inclusive of 12.5% import and 3% sales levies, easing from last week's $43, a five-month peak.
In Singapore, premiums of $0.80-$1.50 were charged, Brian Lan of dealer GoldSilver said, adding buying came mostly from investors.
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