MUMBAI: India's wholesale gold buying stayed weak for a third session on Tuesday as prices moved higher, but a strong rupee, which makes the dollar-quoted asset cheaper, aided sentiment, dealers said.
"There are stray deals, but there's nothing much to write home about... price is dominating the sentiment," said a dealer with a private bank in Mumbai.
International gold, which guides the domestic markets, was trading higher at $1,118.25/1,119.25 an ounce as against the previous close of 1,113.6/1,114.40.
Gold tracked the euro higher, but stayed below a 1-month high hit the previous day as uncertainty about the timing and pace of monetary tightening in the United States drove off some investors.
"If gold comes down below $1,110 (an ounce) or 15,800 rupees (per 10 grams), market may get re-activated," said another dealer with a state-run bank.
The Indian rupee edged higher supported by slightly higher stocks, but mixed cues from Asian peers kept trading in a tight range.
Traders are trying to stock up in anticipation of India's wedding season, which begins in April, when demand for the yellow metal peaks in India.
