MUMBAI (Reuters) - India's local gold demand remained quiet on Wednesday as it traded above the psychological 14,000-rupees-mark in the midst of the wedding season, with scrap continuing to flow in the market, dealers and traders said.
"There is no much demand...there are no enquiries from jewellers as well," said a dealer with a state-run bank in Mumbai. "Volatility is keeping them away."
Traders said jewellers are unwilling to buy new stock due to the unsold stock lying with them in their warehouses.
"People are expecting prices to come down to $800-835 so that they can buy," added the dealer.
The benchmark April contract on the Multi Commodity Exchange (MCX) was 41 rupees higher at 14,030 rupees per 10 grams at 1:15 p.m., after hitting a high of 14,040 rupees earlier.
Gold is still available at a discount of 250-300 rupees compared with prices quoted by banks, signifying lack of demand.
Traders were also seen taking profits on the yellow metal, which they had bought at lower prices.
"Business is down by 80 pct," said Darshan Zaveri, director with Manubhai Zaveri Ornaments, an Ahmedabad-based bullion trader.
"Even we are selling gold at a discount (at the retail level)," said Zaveri, "but there are no buyers," he added.
