India gold buying cools off after new records

India's gold demand abated on Friday as prices struck a fresh high, after a slight pick-up seen in offtake in the previous session, dealers said.

"I did 40-55 kgs yesterday when prices were at around USD 1,135-1,140 (an ounce), but today there is nothing on domestic front," said a dealer with a state-run bank in Mumbai.

The most-traded December gold contract hit a fresh record high at Rs 17,284 per 10 grams, before trading 0.12 % higher at Rs 17,251 at 2:15 pm tracking overseas leads. 

Dealers said traders were stationed on the sidelines seeking lower prices to stock for the ongoing wedding season.

"I have a few orders below USD 1,125 (an ounce)," said another dealer with a state-run bank in Mumbai.

Dealers said their business has declined by about 50% on year as high prices dented demand.

Jewellery demand in India, the world's largest consumer, fell 42% to 111.6 tonne in the third quarter to September, while total demand, which comprises jewellery and retail investment demand, fell 49% to 137.6 tonne.