LONDON (Commodity Online): Wait and watch, that is the game bullion market is playing now. With India's new tax on gold imports hitting the demand in global market, investors and importers are now waiting and observing the movements for a clear hint.

However, gold scrap sales have picked up slowly in Southeast Asia but witnessed no major movements.

Gold bars were offered at a premium of 50 to 60 US cents an ounce to the spot London prices in Hong Kong, down from 80 cents last week and as high as $1.50 two weeks ago.

Spot gold fell more than $2 to around $1,116 on Tuesday but it was still within sight of a near 1-week high of $1,123.30 hit the previous day. Bullion was around 7 percent above a three-month low seen in early February.

To add to that many jewelers and investors are waiting for this week's US jobless data, which will give more clues on consumer spending and set the tone for currencies. Forecasts are for a loss of 50,000 jobs in February, with the jobless rate seen ticking back up to 9.8 percent.

India's buying spree during festivals has been a main boost for international gold sales but this Holi (a religious festival celebrated  in India with much fanfare) the Indian jewellers did not stockpile much.

Gold jewellery is the most common gift during religious events in India and is an essential wedding present.