Asia Gold-Record price rally takes toll on India demand; China premiums firm

* More clients coming to sell gold bars - Singapore dealer * India discounts slip to $28/oz from $40 last week * China premiums at $25-30/oz this week By Rajendra Jadhav and Brijesh Patel April 5 (Reuters) - Physical gold demand in India remained tepid this week as a blistering rally in domestic prices put off buyers, while premiums held firm in top consumer China. In India, the world's second-largest gold consumer and a major importer, domestic prices MAUc1 rose to a record 70,275 rupees per 10 grams this week. "Buyers are eager to make purchases, but they are waiting for a price correction. We could see good demand if prices correct by 3%-4% from current levels," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji. Indian dealers offered discounts of up to $28 an ounce over official domestic prices - inclusive of 15% import and 3% sales levies, the highest since March 2023 - versus last week's $40 discount. "Jewellers sat on the sidelines for nearly a month, anticipating a dip in prices. However, prices continued to rise. While some jewellers made limited purchases this week, overall demand remained lukewarm," said a Mumbai-based bullion dealer with a private bank. In China, dealers charged premiums of $25-$30 per ounce XAU-CN-PREM over benchmark prices XAU= , compared to $15-$35 last week. "This week's Chinese holiday (Tomb Sweeping Day) has resulted in a shortened trading week and muted demand for gold," said Bernard Sin, regional director, Greater China, at MKS PAMP. "Persistent deflation, property slumps, and trade tensions remain key hurdles, we anticipate no stimulus will be needed for demand in gold," Sin added. In Singapore, bullion was sold at between $1 to $2.50 premiums XAU-SG-PREM , little changed from last week. "We've seen (an) all time high been set like four times this week and because of that we've seen a lot more clients coming to sell their gold bars," said Brian Lan at Singapore dealer GoldSilver Central. Meanwhile, dealers sold gold at par to $2.25 premiums XAU-HK-PREM in Hong Kong. Gold changed hands XAU-TK-PREM at $0.5 premiums in Japan. (Reporting by Brijesh Patel and Sherin Elizabeth Varghese in Bengaluru, Rajendra Jadhav in Mumbai; Editing by Varun H K) (([email protected]; Within U.S. +1 651 848 5832, Outside U.S. +91 9590227221; Reuters Messaging: [email protected]))