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RTRS: UPDATE 1-India gold traders stay away as prices rebound
 
(Updates to trends in the physical market)

* Spot gold up at $1,120.65 an ounce XAU=

* London Brent crude up at $76.65 a barrel LCOc1

* Rupee strong at 46.01 per dollar INR=IN

* U.S. ISM non-manufacturing for Jan 1500 GMT [MI/DIARY]

MUMBAI, Feb 3 (Reuters) - India gold traders continued to stay away from fresh deals on Wednesday afternoon as prices rebounded from their intra-day lows as the dollar weakened against other major currencies, dealers said.

"A sudden spike is always a problem for gold demand, but the rupee is in a supporting mode," said a dealer with a private bank in Mumbai, which imported about 3-4 tonnes in January.

International spot gold XAU= was trading $1,120.05/1,120.85 an ounce, rising from the intra-day low of $1,111.67 against the previous close of 1,113.95/1,114.75 an ounce.

"I have sizeable orders below $1,100 levels," said another dealer with a state-run bank.

The Indian rupee extended gains in the afternoon session mirroring moves in the local sharemarket, which gained more than 2 percent, while the dollar's losses against major units also supported. [INR/]

A strong rupee makes the dollar-quoted asset cheaper for local traders.

Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15 p.m. INBULL03:

Wednesday Tuesday

Gold .999/10 grams 16,935 16,905

Silver .999/kg 26,965 26,860

Following were prices in rupees on the Multi Commodity Exchange of India Ltd. at 3:56 p.m. <0#MAU:>:

Contract Current price Net change

Apr gold 16,767 +13

Mar silver 26,240 +179

(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)

Source