Gold demand stays weak, buyers await price fall

Demand for gold in India, one of the world's leading consumers, was subdued on Monday even though the prices were almost steady as buyers were waiting for a correction.

* The most active gold contract for August delivery on the Multi Commodity Exchange (MCX) edged up 0.11% to Rs 29,653 per 10 grams by 5 p.m.

* International gold steadied around two-week lows on Monday, supported in part by benign inflation data from China and a modest decline in the dollar, although uncertainty over the outlook for U.S. interest rates in particular tempered investor appetite for the metal.

* "Buying is slow as of now, as there are no major festivals in the next few days. Rates are high and buyers are waiting for some correction in prices," said Ghanshyam Nichani, owner of Dhanraj Jewellers, a retailer at Mumbai's Zaveri Bazaar.

* The rupee, which fell to an over one-week low on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Good monsoon rains are vital to incomes in rural areas, which contribute to 60% of gold imports, dealers said. The country has so far received 30% lower rains than normal since the beginning of the monsoon season on June 1.