Gold prices in India jumped close to a record this week, denting physical demand as buyers waited for a price correction, while demand in China also remained relatively low amid volatility and high prices in the spot gold market.

Indian dealers this week were offering a discount of up to $22 per ounce over official domestic prices – inclusive of 6% import and 3% sales levies– widening from last week's discount of $18.

"As the rupee weakens, gold is becoming even more expensive for Indian buyers, and jewellers are finding it harder to decide when and how much to stock up," said a Mumbai-based bullion dealer with a private bank.

Domestic gold prices were trading around 127,500 rupees per 10 grams on Friday, close to the 132,294-rupee record hit in October.

"Even though it's the wedding season, jewellery demand is still really low. People are finding the price hike hard to swallow," said a Kolkata-based jeweller.

Weddings are a major driver of gold purchases in India, with bullion forming a crucial part of a bride's attire and a popular gift from family and guests.

Spot gold hit a record high of $4,381.20/oz on October 20 and has gained 61% so far this year, with brokerages expecting the precious metal to break $4,500 in 2026.

In top consumer China, bullion traded anywhere from discounts of $10 an ounce to premiums of $8, compared with the global benchmark spot price.

Independent analyst Ross Norman said that the concerns around events like the removal of recent tax exemptions are usually relatively short-lived though demand remains subdued for the most part due to high prices.

On November 1, Beijing cut a value-added tax exemption for certain gold purchased through the Shanghai Gold Exchange and the Shanghai Futures Exchange, a move expected to push up costs for jewellery and industrial gold.

In Singapore , gold was sold at premiums of up to $2.50 this week, while in Hong Kong it traded from a $0.5 discount to a $2 premium.

In Japan , bullion was sold at par with spot prices as individual investment remained relatively inactive and jewellery demand stayed steady.

(Reporting by Ishaan Arora in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Shailesh Kuber)