In India, dealers are offering discounts of up to $43 an ounce against official domestic prices, including a 6% import tax and a 3% sales tax, a sharp increase from last week's maximum discount of $14 a week.
India's domestic gold price on Friday was around 126,900 rupees (14,443.77 USD) per 10 grams, up 6.5% from last week's low of 119,150 rupees. International spot gold prices are also heading for a weekly gain of about 5% this week.
Meanwhile, the Indian Gold and Jewelry Association (IBJA) has proposed that the government close the policy loophole allowing tax-free imports of platinum alloy jewelry products containing about 90% gold.
After separating gold from these products, some dealers resold it at discounted prices, distorting the market, while banks had to pay a 6% tax on imported gold, said Mr. Harshad Ajmera of JJ Gold House wholesalers in Kolkata.
In China - the leading gold consumer market, gold bars are traded at a discount of 8 USD to a whopping 4 USD per ounce compared to the global spot gold price.
The Asian gold market is entering a temporary phase, led by China. The sentiment remains cautious: With gold prices at record highs and fluctuating, many traditional retailers are watching, waiting for a clearer correction, said Bernard Sin, managing director of mainland China at PAMP Agency.
In Singapore, gold is traded at a combination of 1.50 to 3.50 USD this week. In Hong Kong (China), the bonus ranges from 0.50 to 2.50 USD.
In Japan, gold is sold at a parity of $0.50 an ounce per ounce compared to spot prices.
(1 USD = 87.8950 Indian rupees).
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