India's gold prices traded slightly lower on Wednesday, pressured by a strong rupee, with traders trickling in to replenish stocks in the middle of the wedding season that lasts till June end, dealers said.
"I have priced more than 100 kg of gold since morning," said a dealer with a private bank in Mumbai. "Demand is good as rising rupee is helping importers."
The most active June contract MAUM9 was 0.31 percent lower at 14,276 rupees per 10 grams at 2:27 p.m.
A strong rupee makes the dollar-quoted asset cheaper.
The Indian rupee trimmed its early fall and rose in afternoon trade as a large corporate and exporters sold dollars, but further sharp gains were capped due to a drop in domestic shares. See [ID:nBOM424647]
A further drop in gold prices may rekindle domestic demand, dealers said.
"I have plenty of orders lined up at $915 (an ounce) levels," said another dealer with a state-run bank.
India's gold imports for the first quarter to March fell 83 percent to 17.7 tonnes, the World Gold Council said.
