NC: India gold buying retreats as prices hit 1-wk high
India's gold buying retreated on Wednesday afternoon as prices extended gains to hit the highest level in a week, though traders awaited leads from the rupee for direction in the dollar-quoted yellow metal, dealers said.
"Yesterday we sold about 125 kgs at USD 1,374-1,379 (an ounce) after New York open, today they (traders) are still waiting for any further fall in gold prices," said a dealer with a state-run bullion importing bank.
The most-active gold for February delivery was trading 0.23% higher at Rs 20,477 per 10 grams at 1:15 pm, after hitting a high of Rs 20,487 rupees, a level last seen on January 5 in line with overseas market.
Bullion edged up in thin trade in the overseas market, with sentiment supported by high oil prices, lingering worries about the severity of the European debt crisis and a shortage of gold bars in Asia.
"There a few advance orders at USD 1,370," said the state-run bank dealer.
Gold traders have been stocking up ahead of the harvest festival slated later in the week
India is the world's largest consumer of the yellow metal.
