India gold price decline lifts physical demand

India's gold futures fell on Wednesday afternoon following losses overseas and the rupee's strength, while demand in local spot markets improved for the first time in nearly a fortnight, dealers said.

At 4:14 pm, the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was down 0.68% at Rs 22,273 per 10 grams.

"There was slight improvement in demand. People are waiting for correction. Good demand will emerge in the market if prices go below USD 1,500 an ounce," said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler in Kolkata.

International gold eased after receding worries about Greece's debt crisis quashed some of the appetite among investors for safe havens, while the rise in the single European currency dented the euro price of bullion.

The rupee, which has a bearing on the landed cost of dollar-quoted gold, gained further on Wednesday to touch a near three-week high propelled by the euro's rise, upbeat local shares and corporate dollar inflows.