Gold buyers in India stayed on the sidelines on Thursday, as prices at record highs continued to hurt demand, dealers and traders said.

It (the record high prices) is hurting India's gold demand and imports as well, said a dealer with a private bank in Mumbai.

Everybody is just waiting for a correction to $920 (an ounce), which is not happening, added the dealer.

Bank gold was 200 rupees dearer than local gold, signifying profit-taking by traders, dealers said.

There are hardly any buyers and all were sellers, said Mayank Khemka of Khemka International in Delhi.

They don't want to replenish stocks as well as whatever existing inventory is still lying unsold, Khemka added.

Any correction to 13,500 (rupees) would be a good level to buy, added Khemka.


Traders said the flow of scrap gold continues as consumers cash in on the record-high prices.

There are around 60-70 people in queue outside and inside my shop, said Jitendra Kantilal, a partner at Zaveri Bazaar-based scrap buyer, Jugraj Kantilal & Co..

Kantilal added some of the sellers now expect prices to touch 16,500, and that's why they are not selling.

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