Indian Gold Buying Forestalled By Higher Prices

According to a report by the Economic Times, gold buying retreated because prices have passed above the bargain zone.

"On Monday we saw good sales, but by yesterday evening it turned dull... but today only exporters are covering fearing that prices may move higher," said a dealer with a state-run bank in Mumbai, which deals in bullion.

"However, there are no domestic deals...," said the dealer....

"They would buy if prices come to $1,180 (an ounce)," said another dealer with a private bank.

Also adding to the weakening demand was a weakening rupee.