Gold demand was weak in major Asian markets this week, with high prices dampening retail purchases, even in India during its wedding season; in China, the removal of tax breaks on gold purchases also dampened consumer appetite.

This week, Indian dealers offered discounts of up to $18 per ounce (including a 6% import tax and a 3% sales tax), down from a maximum discount of $21 last week.

On Friday, domestic gold prices were around 126,100 rupees per 10 grams, up 4.4% from last week's low of 120,762 rupees.

“Buyers are uneasy about the current high prices and are waiting for a price correction, which has kept demand very weak,” said Ashok Jain, owner of Chenaji Narsinghji, a gold wholesaler in Mumbai.

A precious metals trader working at a private bank in Mumbai said that jewelers have also paused stockpiling for the current wedding season due to a surge in foot traffic at jewelry stores during Diwali, followed by a sharp decline.

In India, weddings are a major driver of gold purchases, with jewelry being an essential part of the bride's attire and a common gift for family and guests.

Spot gold prices rose on Friday, on track for a fourth consecutive monthly gain, boosted by market expectations of a December rate cut by the Federal Reserve, while a system glitch at exchange operator CME Group suspended futures trading.

In China, the world's largest consumer market, gold is trading at a premium of $1.40 per ounce to a discount of up to $16 per ounce relative to the global benchmark spot price.

“People are worried about China’s tax (exemptions), so trading volumes remain low,” said Peter Feng, head of trading at Wing Fung Precious Metals.

On November 1, Beijing revoked the value-added tax exemption for certain gold purchased through the Shanghai Gold Exchange and the Shanghai Futures Exchange, a move expected to push up the cost of gold for jewelry and industrial use.

This week, gold in Singapore traded at par with a premium of $2.50. Gold in Hong Kong traded at par with a premium of $1.80.

In Japan, gold and silver are sold at spot prices.