Local traders quoted a premium of USD 105 an ounce on London prices, down 12.5 percent from levels quoted last week. Premiums had struck a record of USD 160 in early December.
Gold prices in India, the world's biggest buyer of bullion, hovered near a two-month high on Monday, keeping traders on the sidelines despite the key gold buying festival of Akshaya Tritiya on Tuesday, dealers said.