Mumbai: Physical buying of gold in India, the world's biggest buyer of the yellow metal, abated after a brief pick-up in the previous session, as prices recovered from their lows, dealers said.
Gold in overseas markets traded at $1,657.89 an ounce, recovering 1.61 per cent from previous day's low of $1,631.70. Gold on the Multi Commodity Exchange traded at 28,605 rupees per 10 grams.
"Yesterday evening there was some activity at $1,635-$1,640, but today there is nothing," said a senior dealer with private bullion importing bank. "Gold is holding well today above $1,655 levels, even rupee is not supporting physical players."
The rupee, which hit its lowest level in three months, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Buying has been moderate after jewellers called off their three-week strike protesting against an excise levy. A final decision will not be known until May 7 when Parliament is expected to consider the 2012/13 budget and any changes would be made public.
India's wedding season is at its peak now, while Akshaya Tritiya, one of the biggest gold buying festivals, falls later this month.
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