ASIA GOLD — India gold swings to premium as lower prices lift jewellery demand

India premiums of up to $7 this week Indian mutual funds stop bulk subscriptions to gold ETFs Demand subdued in China due to price volatility By Sukanya Mitra and Rajendra Jadhav Oct 16 (Reuters) — Gold traded at a premium in India this week for the first time in more than three months as a pullback in prices boosted jewellery purchases, while demand in top consumer China remained subdued. In India, domestic gold prices were quoted around 148,200 rupees per 10 grams on Friday, after touching a two-week low of 145,627 rupees earlier in the week. "Jewellery demand is picking up with the festive and wedding season kicking in, but investors are still holding back as prices continue to fall," said Chanda Venkatesh, managing director of Hyderabad-based bullion merchant CapsGold. Dealers quoted premiums of up to $7 an ounce over official domestic prices, inclusive of 15% import and 3% sales levies, compared with discounts of up to $6 last week. Although gold imports typically increase ahead of the festival season, inflows have been lower than usual this year, tightening domestic supplies, said a Mumbai-based dealer at a private bank. India's gold imports in September fell to $1.8 billion,