January 04, 2011 / 18:15 IST
India gold prices were steady on Tuesday afternoon tracking overseas markets, but demand stayed weak as wedding season neared its end in the world's largest consumer of bullion, dealers said.
"There is less demand as prices are really volatile, some stagnation is coming," said a dealer with a state-run bullion importing bank in Mumbai.At 1:29 pm, the most-active gold for February delivery was flat at 20,773 rupees per 10 grams, after recovering from a low of 20,735 rupees struck earlier.International gold held steady, supported by the physical demand outlook, but a stronger dollar following the release of positive US data weighed on the market. A weaker rupee kept the downside limited.The Indian rupee weakened after an early rise as traders covered short positions in the dollar, tracking a reversal in stock market gains and in line with a broadly strong US unit overseas. India's gold buying is expected to restart in mid-January, when harvest festivals are slated. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
