Gold traders in India, the world's biggest buyer of the metal, refrained from stocking up in a seasonally slack demand period, as prices stayed near their highest level in three weeks.
While gold imports into India, fell about 81 per cent on month to 31.5 tonnes in June after the government raised import duty and stopped consignment imports.
"There is no demand... even supplies are limited," said Harshad Ajmera, proprietor of wholesaler JJ Gold House, adding there could be some demand if prices fall below 26,000 rupees.
Most of the demand is met by state-run trading houses like MMTC, STC and PEC, and banks, the primary dealers of bullion, are waiting for fresh guidelines from the central bank on imports on outright payment basis.
At 3:30 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.32 per cent up at Rs. 26,520 per 10 grams, not far from a high of Rs. 26,573 in the previous session, a level last seen on June 24.
Silver for September delivery on the MCX was 0.12 per cent higher at Rs. 40,999 per kg.
Copyright: Thomson Reuters 2013