India's domestic gold demand continued to trickle in on Friday as prices ruled below the key psychological level of 13,000 rupees, dealers said.
"There is a little demand ... but no big interest," said a dealer with a private bank in Mumbai.
Dealers said some traders refrained from buying as local gold was available cheaper by about 200 rupees than bank.
"We see further correction in gold prices and expect this disparity to go away," the dealer added.
MCX gold futures on the continuous charts traded at 12,900 rupees per 10 grams, about 10 percent lower than its all-time high of 14,320 rupees struck on Oct. 10.
Underlying gold demand was strong and traders said they were waiting for a price correction to stock for the wedding season, which starts mid-Jauary and lasts till May.
"Buyers are still on the sidelines expecting prices to fall further to 12,100," said S L Jain, president of Chandni Chowk Jewellers' Association in Delhi.
