"There are advance orders placed by traders below $900," said a dealer with a state-run bank in Mumbai, "since it had gone below $900 levels on Tuesday, people are waiting for lower levels."
International spot gold
Dealers said traders were not in a position to enter into deals as banks, the primary sellers of gold, were closed on Tuesday and Wednesday for a public holiday.
The benchmark April gold contract MAUJ9 was 0.18% higher at 15,143 rupees per 10 grams at 1:51 p.m., after hitting a high of 15,225 rupees earlier.
The contract had touched a low of 14,815 on Tuesday as rebounding equity markets reduced the yellow metal's appeal as a safe haven asset.
The disparity between bank and local gold was also affecting demand, they added.
"Today the disparity is at about 150–200 rupees," said Pinakin Vyaas, chief manager-treasury with IndusInd Bank, "Lower purchasing power due to slowing economy is also affecting gold demand.