MUMBAI: India's gold buying retreated on Monday afternoon after the recent pick-up as prices of the yellow metal jumped to a four-month high, dealers said.
"There have been no bookings after 7th of April, when prices moved above $1,140 (an ounce), there was buying before that," said a dealer with a state-run bank in Mumbai.
International gold, which guides the domestic markets, rose to its highest in over four months on the back of robust investment demand and as the euro strengthened against the dollar after euro zone ministers agreed a rescue package for Greece.
International gold was trading at $1,164.60/1,165.40 an ounce at 1:40 p.m. as against the previous close of $1,159.00/1,162, after hitting a high of $1,168.70, a level last seen in early December.
"A fall to $1,120 or below that could activate the physical markets," said another dealer with a private bank. However, a strong rupee, which makes the dollar-priced gold cheaper, helped sentiment, they added. The Indian rupee touched a fresh 19-month high on Monday, as the euro rose to its highest in nearly a month against the dollar, but weaker stock markets limited the local currency's gains.
