MUMBAI: India gold demand eased after the yellow metal tested a fresh record, deterring jewellers further in a seasonally lean period, dealers said. The most-active August gold contract hit a new all-time high of Rs 19,198 at 2:59 p.m., reversing from a low of Rs 18,907 hit earlier in the session. "In rupee terms gold is above Rs 19,000, we haven't done a single deal since morning," said a dealer with a state-run bullion dealing bank in Mumbai, "most of our deals are down below $1,200 (an ounce)." India gold trade has been witnessing slackness in buying since the start of May as record high prices dented demand. May imports fell to around 17-18 tonnes from 28.6 tonnes in the same month a year ago, the head of Bombay Bullion Association (BBA) Suresh Hundia, told Reuters on May 28. Dealers and traders expect the weakness in physical offtake to continue as the world's largest consumer enter the seasonally lean period. Rural India, which accounts for 65 percent of the total demand, divert their savings to buy seeds and fertlizers for their kharif crops, leading to limited demand for the metal. However a strong rupee, which makes the dollar-quoted asset cheaper, capped the upside. The Indian rupee trimmed early gains, tracking a choppy domestic sharemarket but the dollar's losses against major currencies helped sentiment.

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