India gold buying cools off on record prices

MUMBAI (Reuters) - India gold buying cooled off on Monday after picking up slightly in the previous week as prices struck a fresh record high and the flow of scrap eased, dealers said.

"Buying is negligible compared to the regular daily volumes," said a dealer with a state-run bullion dealing bank in Mumbai.

The most-traded December contract hit an all-time high of 17,534 rupees per 10 grams and was trading 0.64 percent higher at 17,501 rupees at 3:01 p.m.

Buyers are comfortable only upto 17,200 rupees level, said the dealer.

Dealers said the flow of scrap has slowed as sellers sought higher prices.

"The flow has slowed despite record high prices, I may end-up collecting 3 kgs till the end of the day," said Jitendra Kantilal, partner Jugraj Kantilal & Co., a gold scrap dealer in Mumbai, which offered to buy scrap at 17,700 rupees.

"20-25 kgs (of scrap gold) may have entered Zaveri Bazaar last week," Kantilal added.

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