India gold traders turned their backs on the market on Monday as prices continued their record-breaking spree in the middle of the wedding season, but a strong rupee aided sentiment, dealers and traders said.

"The physical market is absolutely calm looking at the way prices have been jumping around. Rupee is acting in support but overseas rise is huge. People are comfortable with USD 1,080 (an ounce)," said Pinakin Vyas, chief manager-treasury, IndusInd Bank in Mumbai.

"Demand is dull, I have a few orders in the range of USD 1,090-1,100 (an ounce)," said a dealer with a state-run bullion dealing bank.

Gold prices on the Multi Commodity Exchange stood at Rs 16,684 per 10 grams at 2:17 pm, after hitting a record of Rs 16,703 earlier in the session. The last record of Rs 16,688 was struck in late Friday trade.

The rupee extended gains in afternoon session on Monday on the back of the dollar's sharp drop versus major units and boosted by gains of more than 1% in the domestic sharemarket. A strong rupee makes the dollar-quoted asset cheaper.

Scrap sales eased after last week's pick-up as consumers expected a further rise in prices.

"There is no one now, we expect people to come in by afternoon for sale. At the end of the day, 100 kgs of scrap may come in Zaveri Bazaar. At least 400 kgs was collected last week," said Jitendra Kantilal, partner, Jugraj Kantilal & Co, a Zaveri Bazaar-based scrap dealer.

Jugraj quoted Rs 16,800 per 10 grams for purchase of scrap gold.

India imported 27 tonnes of gold between October 1 and October 22 against 44 tonnes imported in all of October last year, the head of Bombay Bullion Association (BBA) said, as higher prices continue to hurt demand.