Gold traders hold off buys as prices weigh

Gold traders in India, the world's top buyer of the bullion, refrained from buying amid a peak wedding season, thwarted by a huge stock pile and prices that hit a more than four-month high.

* The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was steady at RS 29,042 at 1:47 p.m., after hitting a high of Rs 29,087, a level last seen on December 13, aided by a weaker rupee. * "There are no sales after Akshaya Tritiya... traders are stuck with their old inventory," said Harshad Ajmera, proprietor of JJ Gold House in Kolkata. * Gold sales dropped by more than 50% to 10 tonnes for Akshaya Tritiya on Tuesday, and demand has been sluggish since. * A depreciating rupee also dented sales. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. * In the overseas market, however, gold struggled to make a headway as the downgrading of Spain's credit rating fuelled concerns about the debt-stricken euro zone.