Jan 24 (Reuters) - Elevated prices dampened demand for physical gold in most Asian hubs this week, while Indian dealers offered the biggest discounts in more than six months.
In India, domestic prices hit an all-time high of 80,034 ($927.69) rupees per 10 grams on Friday, tracking the international spot gold prices and hovering near a record high of $2,790.15 hit on Oct. 31.
"Retail demand was negligible this week due to the price rise. Most jewellery stores were witnessing thin footfall," a Chennai-based bullion dealer said.
Indian dealers this week offered a discount of up to $38 an ounce over official domestic prices – inclusive of 6% import and 3% sales levies, up from the last week's discount of $30 an ounce.
Jewellers were not making purchases as some are speculating that the government might change the import duty structure in the next week's annual budget, said a Mumbai-based dealer with a private bullion importing bank.
Finance Minister Nirmala Sitharaman will present the next fiscal year's federal budget on Feb. 1, following a significant import tax cut on gold in the previous budget.
In top consumer China, dealers offered discounts of $10 and charged a premium of $10 per ounce above international rates , versus premiums of $3-$13 last week.
Chinese gold prices are higher again and close to historical highs, which has sucked out demand but some people are still buying due to the holiday season starting next week, said a mainland China-based precious metal trader.
The Bank of Japan raises interest rates to their highest in 17 years.
China's official Spring Festival holidays will run from Jan. 28 to Feb. 4.
In Hong Kong, gold was sold at par with a $2 premium.
In Japan, bullion was sold from a discount of $1 to a premium of $1.
"Trading houses hesitate to purchase gold with rates increasing," said a Tokyo-based trader.
($1 = 86.2720 Indian rupees)
Reporting by Anushree Mukherjee in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Rashmi Aich
