India gold at record high spurs scrap sales

MUMBAI, Nov 4 (Reuters) - India gold powering to record highs spurred more scrap sales on Wednesday as consumers cashed in on the price jump, but physical offtake remained weak, dealers said.

"Currently I have around 15-20 people lined outside my shop, and we expect around 40-50 more by this evening," Jitendra Kantilal, partner, Jugraj Kantilal & Co., a Zaveri Bazzar-based scrap dealer said.

Kantilal offered to buy scrap gold at 16,650 rupees per 10 grams.

Gold futures on the Multi Commodity Exchange was 0.02 percent higher at 16,622 rupees per 10 grams at 2:29 p.m., after hitting a record of 16,664 rupees earlier tracing overseas markets.

International gold, which guides the domestic markets, ran to a record high above $1,090 per ounce, latching on to a weaker dollar with continued support from the IMF's sale of gold to India's central bank.

However, dealers said, wholesale buyers turned their back on the market, unwilling to get stuck with high-priced stocks ahead of the wedding session.

"I haven't booked any deals since yesterday's late night surge. I have advanced orders in the range of below $1,050 (an ounce)," said a dealer with a bullion dealing state-run bank.

India's wedding season would last till December-end.

Imports by traders between January and Oct. 22 were 157.9 tonnes, down from 383 tonnes bought in the same period a year ago, data from the Bombay Bullion Association showed.