Jewellers in India, the world's largest gold consumer, turned their back on gold as prices held near a four-month high, while selling from holders in other parts of Asia kept premiums under pressure. Gold bars were quoted 70 to 80 US cents an ounce above the spot London prices in Singapore, unchanged from last week, due to the absence of inquiries from jewellers. Gold added USD 1.40 to USD 1,155.30 an ounce, within sight of Monday's peak of USD 1,168.70. Bullion is about 6% below a record high above USD 1,226 struck in early December. Dealers noted steady demand from India last week, whenever gold slipped below USD 1,150 an ounce. "Physical markets have slowed due to the high volatility in prices and in India, the demand has been curtailed by a lack of any major festivals as well as rising international prices," said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai. "A stronger rupee helps offset the recent rise in prices, but the demand is lower in comparison to the same period last month," he added. The wedding season is underway in India but major festivals, such as Akshaya Tritiya next month, also boost consumption. Gold jewellery is the most common gift during religious events in India, which accounts for 20% of global demand for gold. "Indonesia is eager to sell at high prices and we don't see much buying from India either," said a physical dealer in Singapore. "There's a chance for gold to move higher and I think it may try to break the USD 1,140 to USD 1,170 range. But if the price is not attractive, then buying power wouldn't be there," said the dealer, adding that demand from Thailand also slowed down due to holidays.

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