Physical gold dealers in China this week charged the heftiest premiums in over three months as a retreat in domestic prices raked in retail buying, while weak demand flipped the Indian market into a discount.

In top consumer China, gold was sold at premiums of anywhere between $4 and $15 to global prices which briefly dipped below $1,900 an ounce on Thursday.

“Investors are buying on the dip and retail investors are also interested in picking up some jewellery,” said Peter Fung, head of dealing at Wing Fung Precious Metals, adding there could be more buying if prices retreat further.

Weaker economic data on Friday added pressure for Chinese authorities to do more to shore up growth.

Yet there’s “no sign of any weakening of gold demand in the world’s largest gold consumer country despite the anaemic economic recovery and a significantly higher price level in comparison to the beginning of the year,” Commerzbank analysts wrote in a note.

In Hong Kong, gold changed hands at a $0.50 to $2.75 premium on global prices, while Singapore dealers charged $1.50-$1.75 premiums.

However, lower retail demand forced Indian dealers to offer discounts of up to $4 an ounce on official domestic prices — inclusive of 15% import and 3% sales levies — down from the last week’s $1.5 premiums.

Asia Gold: India flips to premium as price dip lures some

“The continuous price correction is prompting buyers to postpone purchases. They are hoping prices will correct further,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsingji.

Local gold prices fell to 57,651 rupees per 10 grams earlier this week, the lowest since March 15.

Jewellery demand has decreased substantially in the last few days, said a New Delhi-based bullion dealer.

“Coins and bars demand is relatively better as some are buying them for investment purpose,” he said.

In Japan, bullion was sold at anywhere between a $0.50 discount to a $0.50 premium.