India's domestic gold demand remained subdued as traders awaited a correction in prices which rose to their highest level since May 13, tailing overseas markets, dealers said.
The most active August contract MAUQ9 was up 0.32 percent 14,932 rupees per 10 grams at 2:00 p.m., after having gained 2.5 percent in the previous four sessions.
Overseas gold, which guides the domestic market, hit a three-month high above $980 per ounce, buoyed by a weak dollar, while investors kept an eye on inflationary pressures in the wake of stimulus spending by governments.
"The volumes have dried up even though we are in the midst of wedding season," said a dealer with a state-run bank in Mumbai.
