India gold demand low, all eyes on U.S. Fed

MUMBAI (Reuters) - India's wholesale demand for gold was almost at a standstill on Tuesday with all eyes on the outcome of the U.S. Fed meeting that could give a new direction to prices, dealers said.

Gold prices rose taking cues from overseas markets that remained firm on expectations of a 25 basis points cut in rates, and could boost the metal's investment appeal.

"Wholesale customers are waiting to fix the price after the Fed decision," said Rahul Gupta, director of P P Jewellers in New Delhi. "They would fix the price if it rises, and even if it falls."

Dealers in banks that mainly sell bars of imported gold said their clients were in wait-and-watch mode.

One large wholesaler in Vijawada said his clients were eyeing a fall to 9,200 rupees per 10 grams.

However, retail buying of gold was "on as usual" said P P Jewellers' Gupta, who also has jewellery shops.

"Consumers think prices are on the rise because of festivals, so they feel they should buy as early as they can."