MUMBAI: India gold demand abated on Monday afternoon as rupee weakened against the dollar, after buying picked up in January, when traders stocked in anticipation of wedding demand, dealers said.
"People are just enquiring today, nothing is materialising... I did quiet a few deals on Friday on $1,075-1,080 (an ounce) on Friday," said a dealer with a private bullion dealing bank in Mumbai, which imported about 4-5 tonnes in January.
The Indian rupee fell about 0.6 percent, tracking early falls in domestic shares, which raised concerns about foreigners repatriating their investments, with largely weak regional peers also hurting.
A weaker rupee makes the dollar-quoted asset expensive. International spot gold was trading $1,082.40/1,083.20 an ounce as against the previous close of $1,079.2/1,083.2.
"Sizeable orders are there in the between $1,070-1,075 an ounce, said another dealer with a state-run bullion dealing bank," which imported about 2 tonnes of the yellow metal.
India has imported 35-40 tonnes of gold during January 1-27, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said on Wednesday.
