Gold traded at a wide discount in India this week as price volatility weighed, while demand ​in China remained steady with the country's central bank reporting its largest monthly increase in gold reserves in ​more than ​2-1/2 years in June. 

International spot gold prices slipped to a two-week low, retreating from an over 2% jump last week. Domestic gold prices in India were also ⁠trading around 144,800 rupees per 10 grams on Friday, after rising to 148,069 last week.

"Buyers are now waiting for a bigger drop in prices before making purchases," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Dealers offered gold at discounts of up ​to $19 an ounce over ‌official domestic prices ⁠this week, including ⁠15% import and 3% sales taxes, compared with premiums of up to $5 an ounce and discounts of ​up to $7 an ounce a week earlier.

"Retail buying has ‌slowed, and most transactions are now exchanges of old jewellery ⁠for new. As a result, jewellers have little need to replenish inventories by buying gold from banks," a Mumbai-based bullion dealer with a private bank said.

In China, bullion traded at discounts of $1 to premiums of $5 an ounce to the global benchmark spot price , compared to last week, when it traded at par to discounts of $2.

"The central bank added 480,000 ounces in June, extending its streak to 20 months and lifting reserves to 75.44 million ounces. This counter-cyclical buying is helping stabilize prices," said Bernard ‌Sin, regional director of Greater China at MKS PAMP.

In Hong Kong, ⁠gold traded between a $1 discount and a $1.70 premium.

Hong Kong launched ​a central clearing system for gold on Tuesday and also revived dollar gold futures trading, as it seeks to become a regional reserve hub for the precious metal.

In Singapore , gold ​was sold between ‌a $1 discount and a $2 premium, while in Japan , it was sold ⁠at a discount of $0.40.

(Reporting by Pablo ​Sinha in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Sherry Jacob-Phillips)