ALSO READGold demand slumps as prices rise during peak wedding season Gold prices flip to discount on muted wedding season demand Indian gold price discounts remain sluggish, Chinese premiums stable Gold prices fall by Rs 250 after demand softens Gold prices dip by Rs 100 to below Rs 31,000 mark on weak demand
Spot gold touched $1,235.92 an ounce this week, its lowest level since July 20.
"Very good demand (in Asia) this week. Prices below $1,250 an ounce a clear buy signal for many," said Cameron Alexander, an analyst with Thomson Reuters-owned metals consultancy GFMS.
In top consumer China, premiums rose up to $9-$10 an ounce over the international benchmark, from $6-$9.50 last week.
In Singapore, premiums rose to 80 cents-$1.20 an ounce, compared with 70 cents-$1 the previous week. Hong Kong prices were at a premium of 70 cents-$1.40, barely changed from last week.
Premiums in Tokyo were quoted at 25 cents per ounce, unchanged from last week, when prices shifted to a premium for the first time in more than four months.
"The appreciating rupee is giving jewellers a reason to delay purchases.
It seems they will build inventory only after the Christmas break," said a Mumbai-based dealer. "Unless there is sharp drop in prices, they won't increase purchases."
The rupee hit a three-month high against the dollar on Friday, making gold imports cheaper for banks and bullion dealers.
After the Diwali festival, jewellers had been banking on wedding season demand, but wedding related purchases were muted, he said.
Dealers in India were offering a discount of up to $2 an ounce this week over official domestic prices, compared with $3 discount last week. The domestic price includes a 10 percent import tax.
Local gold prices fell to 28,055 rupees per 10 grams on Tuesday, the lowest level since July 17.