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Gold discounts in India rose this week as consumers refrained from buying as local prices hit a month's high, whereas the upcoming Lunar New Year festival stimulated gold buying activity in other major Asian markets.

Indian dealers offered a discount of up to $17 an ounce to official domestic prices, inclusive of 6% import and 3% sales levies, up from the last week's discount of $14 an ounce.

"Prices are high, so buyers are holding off on purchases. Anyway, the inauspicious Khar Mass (month in Hindu calendar) is still going on," an Ahmedabad-based jeweller said.

In India, domestic prices rose to 78,360 ($912.41)rupees per 10 grams on Friday after falling to 75,459 rupees last month.

Jewellers were on the sidelines due to volatility in the Indian rupee and overseas gold prices, said a Mumbai-based bullion dealer with a private bank.

The rupee depreciated to a record low this week, effectively making shipments expensive for India, which fulfils most of its demand through imports.

International spot gold prices hit four-week highs this week.

In China, the world's top gold consumer, dealers quoted discounts of $2 per ounce to $9 premium on spot rates, down from the premiums of $4.50 to $10 charged last week.

The Year of the Snake approaches, arguably an auspicious year and a perfect backdrop for further gold purchases, independent analyst Ross Norman said.

"Chinese investors will be encouraged by news that the PBoC have added gold to its reserves for the second month in a row, which may suggest the current price reflects fair value."

In Singapore, dealers charged par level to $2.50 premium. In Hong Kong, gold was sold at a $0.30 discount to a premium of $2.

"Lunar New Year is coming up, so we also see some wholesale (demand) picking up in terms of gold bars," said

Gold discounts in India rose this week as consumers refrained from buying as local prices hit a month's high, whereas the upcoming Lunar New Year festival stimulated gold buying activity in other major Asian markets.

Indian dealers offered a discount of up to $17 an ounce to official domestic prices, inclusive of 6% import and 3% sales levies, up from the last week's discount of $14 an ounce.

"Prices are high, so buyers are holding off on purchases. Anyway, the inauspicious Khar Mass (month in Hindu calendar) is still going on," an Ahmedabad-based jeweller said.

In India, domestic prices rose to 78,360 ($912.41)rupees per 10 grams on Friday after falling to 75,459 rupees last month.

Jewellers were on the sidelines due to volatility in the Indian rupee and overseas gold prices, said a Mumbai-based bullion dealer with a private bank.

The rupee depreciated to a record low this week, effectively making shipments expensive for India, which fulfils most of its demand through imports.

International spot gold prices hit four-week highs this week.

In China, the world's top gold consumer, dealers quoted discounts of $2 per ounce to $9 premium on spot rates, down from the premiums of $4.50 to $10 charged last week.

The Year of the Snake approaches, arguably an auspicious year and a perfect backdrop for further gold purchases, independent analyst Ross Norman said.

"Chinese investors will be encouraged by news that the PBoC have added gold to its reserves for the second month in a row, which may suggest the current price reflects fair value."

In Singapore, dealers charged par level to $2.50 premium. In Hong Kong, gold was sold at a $0.30 discount to a premium of $2.

"Lunar New Year is coming up, so we also see some wholesale (demand) picking up in terms of gold bars," said Brian Lan, managing director at Singapore-based GoldSilver Central.

In Japan, bullion was sold from a discount of $0.5 to a premium of $0.5.

($1 = 85.8825 Indian rupees)

In Japan, bullion was sold from a discount of $0.5 to a premium of $0.5.

($1 = 85.8825 Indian rupees)