(Reuters) - India gold buying retreated on Wednesday afternoon, after briefly picking up in the previous session, as international prices climbed, but a firm rupee kept the upside restricted in the domestic market, dealers said.
"We saw some deals at $1,210 (an ounce) yesterday, but today there are none," said a dealer with state-run bank, which deals in bullion.
International gold, which guides the domestic market, was trading higher at $1,237.20/1,238.00 an ounce, recovering from a low of $1,210.10 in the previous session.
The yellow metal closed at $1,229.25/1,230.25 in the previous session.
Gold rose to multi-week highs in dollar, euro and sterling terms in Europe as equity markets fell on concerns over the outlook for global growth, lifting the precious metal's appeal as a safe store of value.
"People are now looking for a $10 drop from here," said another dealer with a private bank.
The Indian rupee extended gains in afternoon session after the dollar gave up gains versus majors and turned weaker, but a choppy domestic sharemarket limited further gains.
A strong rupee makes the dollar-quoted asset cheaper.
India's gold demand in the June quarter crawled up 0.2 percent to 164.5 tonnes, thanks to stronger investment demand, data from the World Gold Council (WGC) showed.
