Physical gold demand in major Asian hubs stalled this week after rising prices curtailed retail purchases, while silver piqued investor interest in Singapore.

Indian dealers were this week offering a discount of up to $1.5 an ounce over official domestic prices, inclusive of the 10.75% import and 3% sales levies, down from last week's premium of $2.

"Demand was robust last week because of Dussehra, but this week it fell after prices rose suddenly," said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.

On Friday local gold futures were trading around 47,700 rupees per 10 grams, after falling to 45,479 rupees last month, the lowest since April 6.

Demand is expected to pick up ahead of the Diwali festival next month, a Mumbai-based dealer with a private bank said.

The December quarter usually accounts for about a third of India's gold sales as it takes into account the start of the wedding season as well as festivals like Dussehra and Diwali, when buying gold is considered auspicious.

Premiums in China were at $7-$11 an ounce charged over global benchmark spot prices, little changed from last week's $6-$12.

Asia Gold: India slips to discounts, China demand seen up post holiday

"People are still a little bit hesitant and would like to buy on the dip from here," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

Spot gold prices rose above $1,800 per ounce to hit a one-month peak, en route for a second straight weekly gain.

Premiums in Singapore were at $1.25-$1.70 per ounce versus last week's $0.75-$1.80 with higher prices and COVID-19 induced restrictions keeping demand in check.

"Unlike gold, demand for silver had a noticeable increase from investors... Current prices are attractive given the potential for gains should the white metal rebound," said Vincent Tie, sales manager at Singapore dealer Silver Bullion.

In Hong Kong gold was being sold at a premium of $0.50-$1.50, while a discount of $1 was being offered in Japan, both unchanged from last week.