Demand for physical gold was moderate in India this week due to lower than usual wedding season buying, while top consumer China saw increased activity as wholesalers cleared out inventories into the year-end.
Gold is a popular gift during weddings in India, which are a key driver of demand in the country.
"Jewellers were buying, but volatile prices were deterring them from making large purchases," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
Dealers were charging a premium of up to $1 an ounce over official domestic prices this week, compared with a premium of $1.5 last week. The domestic price includes a 12.5% import tax and 3% sales tax.
Gold futures were trading around 38,050 rupees per 10 grams on Friday. Prices had fallen to 37,100 rupees on Monday, before recovering to 38,850 rupees on Thursday.
Retail demand for weddings is lower than usual due to the higher prices, said a Mumbai-based dealer with a private bullion importing bank.
However, India's gold imports in November jumped 78% from a month earlier to the highest level in five months as jewellers restocked after a fall in prices.
International benchmark spot gold prices were on track to register their highest weekly gain in six.
In China, gold was sold at a $4-$5.5 an ounce premium over the benchmark prices, higher than last week's $2.3-$3.50.
"Jewellery demand is beginning to pick up due to market promotion and discounts. The wholesalers are also keen to clear out inventories for next year," said Samson Li, a Hong Kong-based precious metals analyst at Refinitiv GFMS.
Demand in the world's top bullion consumer has suffered this year mainly due its trade dispute with the United States, which has weighed on economic growth.
Premiums in Hong Kong edged higher to $0.30-$0.55 an ounce from $0.10-$0.30 in the prior week, although ongoing protests in the Asian financial hub deterred consumers and tourists from buying gold.
Singapore premiums narrowed to $0.60-$0.70 per ounce from the $0.50-$0.80 range last week. There has been a pick-up from the wholesale side, said Brian Lan, managing director at Singapore dealer GoldSilver, adding investment demand should rise after the new year.
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