RTRS: UPDATE 1-India gold trades higher, keeps buyers at bay
* Spot gold up at $886.10 an ounce
* London Brent crude higher at $39.94 a barrel LCOc1
* Rupee weaker at 48.49 per dollar
MUMBAI, Dec 29 (Reuters) - India's gold rose more than 2.5 percent on Monday, buoyed by international markets, and domestic demand slackened as traders avoided fresh positions ahead of the year-end, traders and dealers said.
As usual, buying activity is dull due to volatile prices, said Pinakin Vyaas, chief manager, treasury, at IndusInd Bank in Mumbai.
Overseas gold rose more than 2 percent on Monday to its strongest since early October after violence between Israel and Hamas pushed up oil prices on fears of supply disruptions, and spurred safe-haven buying in bullion. See [ID:nSP416962]
A weaker rupee also made the dollar-denominated gold expensive, dealers added.
There is no demand despite discounts being offered by traders, said S.K. Jain, president of Chandni Chowk Jewellers' Association in Delhi, adding gold was available at a discount of 150 rupees (per 10 grams) locally.
