MUMBAI (Reuters) - India's gold buying retreated on Friday afternoon as traders waited for price falls, after offftake picked up late in the previous session, dealers said. "There is not much activity today. I did deals totalling 200 kgs at $1,107-1,110 (an ounce) yesterday evening. They were all wedding buyers," said a dealer with a state-run bank in Mumbai. International gold, which guides the domestic market, was $1,112.40/1,113.20 an ounce at 12:45 p.m., as against the previous day's close of $1,109.30/1,110.10. Gold firmed on Friday as the dollar slipped against the euro on worries U.S. retail sales for February could show a drop in consumer spending, denting prospects for a sustainable economic recovery. However, a strong rupee, which made the dollar-quoted asset cheaper, helped sentiment. The rupee strengthened on Friday as a large corporate sold dollars while early gains in the local sharemarket raised hopes of easing risk aversion which may lead to more capital inflows into the country. Indian gold traders have been hunting for bargains to replenish stocks for the upcoming wedding season, which starts in April.

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