Gold demand in India improved slightly this week as softer prices drew ‌in jewellery buyers even as caution prevailed, while premiums in China eased.

Gold prices in India dropped to ​their lowest since April 2 at 146,444 rupees per 10 grams on Thursday, and are down 1.5% for ​the week ​so far.

Demand improved as the recent price correction drew buyers back, particularly those for jewellery purchases, said Chanda Venkatesh, managing director at CapsGold, a bullion merchant based ⁠in the southern city of Hyderabad.

Dealers quoted discounts of up to $35 an ounce over official domestic prices, inclusive of 15% import and 3% sales levies, down from last week’s discounts of up to $87.

While jewellers have started restocking, purchases remain measured as confidence in retail ​demand for the ‌coming months is still ⁠weak, said a ⁠Mumbai-based bullion dealer with a private bank.

Last month, the South Asian country raised import tariffs on gold ​and silver to 15% from 6% as part of efforts ‌to ease pressure on foreign exchange reserves from higher ⁠oil prices.

India's physically backed gold exchange-traded funds logged their first net monthly outflow in a year in May, as investors booked profits following a sharp rise in prices triggered by higher import duties.

In top consumer China, bullion traded at premiums of $1 to $5 an ounce over the global benchmark price, down from $7 to $10 premiums last week.

"The $4,000 mark for gold was a good support level, and hence we can see some fresh buying interest," said Peter Fung, head of dealing at Wing Fung Precious Metals.

Spot gold hit an ‌over six-month low of $4,022.29 on Thursday before closing higher, and is ⁠on track for a weekly loss.

Meanwhile, China's central bank ​increased its gold reserves for a 19th month in May, data from the People's Bank of China showed on Sunday.

In Hong Kong, gold traded between par and a $1.90 premium, while in ​Japan , it ‌was sold at a discount of $0.50.

In Singapore, gold was sold between ⁠a $0.50 discount and a $2 premium.

(Reporting by Pablo ​Sinha in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Eileen Soreng)