MUMBAI, Dec 11 (Reuters) - India gold reversed early losses to trade higher on Thursday following a rebound overseas, but the the higher prices are pushing domestic buyers further away even as wedding season demand winds down, traders and dealers said.
"Demand is saturated at these levels with dim hopes of recovery any time soon," said Daman Prakash Rathod, director at MNC Bullion Pvt Ltd, a Chennai-based bullion trading house.
Consignment stocks that were requested by banks are still lying unsold, he added.
Overseas gold bounced from lows to hit a 1-week high on Thursday, a day after posting its biggest daily percentage gain in almost three weeks, as the euro firmed against the dollar and oil advanced on the prospects of output cuts. See [ID:nSP378208]
Dealers said those who had bought at levels close to the psychological mark of 12,000 rupees per 10 grams early this week are booking profits.
Going forward, demand is expected to slow until the middle of next month owing to an "inauspicious" period in the Hindu calendar, said Rathod.
Dealers said traders are also waiting for corrective price dips to $780-790 an ounce level.
