India gold buyers eye more falls

India's domestic gold buying slowed as well-stocked traders awaited a further decline in prices, dealers and traders said.

"The physical offtake has slowed since last two days," said a dealer with a state-run bank in Mumbai.

"We have many buy orders at $750 (an ounce) levels," he added.

Dealers and traders said domestic demand had started coming in ever since prices breached $800 an ounce overseas, but expectations of a further downtrend in prices kept buyers at bay.

Overseas gold fell more than 1 percent on Wednesday, defying a rebound in oil prices, after the U.S. dollar bounced against the euro and speculators in Japan shifted some of their money back to stocks.

"We could see sustained demand if we witness around $750-760 (an ounce) levels," said Harshad Ajmera, proprietor of JJ Gold House, a large Kolkata-based bullion trader.

India imports most of its gold. Domestic gold prices usually follow the international trend.