MUMBAI: India gold physical offtake remained dull on Monday, extending previous week's slackness, as traders awaited a further fall in prices, but a firm rupee aided sentiment, dealers said.
"Last week was very dull, we did only 250 kgs... today the situation is nothing different, we did a few export deals since morning," said a dealer with a state-run bullion dealing bank in Mumbai.
International spot markets, which guides the domestic market, was trading $1,135.45/1,16.25 an ounce as against the previous close of $1,129.30/1,131.90 an ounce. "There could be buying below $1,120 (an ounce)," said another dealer with private bank.
The rupee gave up some early gains but still traded strong in afternoon trade, as domestic stocks were trading off highs.
A strong rupee makes the dollar-quoted asset cheaper. India imported 300-350 tonnes of gold in 2009, higher that the previous estimate of a little over 200 tonnes, the head of the Bombay Bullion Association said on January 4.
