India gold demand abates after brief pick-up

Mumbai: Physical buying of gold in India, the world's biggest buyer of the yellow metal, abated after a brief pick-up in the previous session, as prices recovered from their lows, dealers said.

Gold in overseas markets traded at $1,657.89 an ounce, recovering 1.61 per cent from previous day's low of $1,631.70. Gold on the Multi Commodity Exchange traded at 28,605 rupees per 10 grams.

"Yesterday evening there was some activity at $1,635-$1,640, but today there is nothing," said a senior dealer with private bullion importing bank. "Gold is holding well today above $1,655 levels, even rupee is not supporting physical players."

Gold in overseas markets traded at $1,657.89 an ounce, recovering 1.61 per cent from previous day\'s low of $1,631.70.

The rupee, which hit its lowest level in three months, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Buying has been moderate after jewellers called off their three-week strike protesting against an excise levy. A final decision will not be known until May 7 when Parliament is expected to consider the 2012/13 budget and any changes would be made public.

India's wedding season is at its peak now, while Akshaya Tritiya, one of the biggest gold buying festivals, falls later this month.

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