India's gold demand low as bigger price falls eyed

India's gold demand was low on Thursday as buyers waited for prices to ease further from their recent highs or stabilize to be able to make purchases, dealers said.

"There is a little bit of buying from those in dire need," said Ajit Shinde of Magna Projects Pvt Ltd in Kolkata, a large wholesaler. "But it should pick up for the festivals."

Shinde said for the time being, his clients, mostly in Kolkata, were willing to wait for a fall to 8,900 rupees per 10 grams.

Dealers in banks said demand was low with people hoping for a fall to $700 an ounce in overseas markets.

Foreign spot gold was down from Tuesday's 16-month high of $714.20, as the dollar, with which gold usually has an inverse relation, recovered against other currencies. It also eased on investor caution ahead of a U.S. interest rates meet next week.

A slightly stronger rupee helped lower Indian gold prices, but not enough to inspire many buyers, dealers in banks said.

India's busy season is currently on with Ganesh Chaturthi festival falling on Saturday. People, particularly in south India, usually buy ornaments for their idols or for themselves at this time of the year.

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