*
India prices hit lowest since December
*
Singapore sees buying activity on lower prices- dealer
By Rajendra Jadhav and Seher Dareen March 10 (Reuters) - Physical gold dealers in India were forced to offer discounts this week as purchases moderated heading into the end of the financial year, while top consumer China saw robust demand. Premiums of $26-$40 an ounce were charged in China in comparison with global benchmark spot gold prices , which were headed for a weekly fall. There was strong demand for jewellery, with people also buying gold as a hedge against risks such as inflation, said Peter Fung, head of dealing at Wing Fung Precious Metals. Chinese premiums have steadily risen this year, going as high as $40, as activity also benefited from China's post-COVID reopening. The volatility in the local currency could also keep premiums in the $30-$40 range, said Bernard Sin, regional director, Greater China at MKS PAMP. Hong Kong saw premiums of $1.50-$2.50 "More tourists are coming in. Market is good since the quarantine was lifted," Fung added. Local gold prices in India , meanwhile, fell to 54,771 rupees per 10 grams, the lowest since Dec. 29, 2022, but dealers still had to offer discounts of up to $2 an ounce over official domestic prices — inclusive of 15% import and 3% sales — versus last week's $1 premiums.
"Buying has slowed down from jewellers as they prepared for the year-end closure," said a Mumbai-based dealer with a private bullion importing bank.
The Indian fiscal year runs from April to March.
But jewellers have been reporting modest retail demand because of the recent price correction, said a New-Delhi-based bullion dealer.
Premiums in Singapore ranged between $1.50 and $2.50 an ounce.
With prices easing, demand picked up slightly and some wholesalers bought to cover their short positions, said Brian Lan, managing director at dealer GoldSilver Central. (Reporting by Arundhati Sarkar and Kavya Guduru in Bengaluru and Rajendra Jhadav in Mumbai; Editing by Arpan Varghese and Nick Macfie)
8780;))