UPDATE 1-India gold firm, buyers eye 12,000 rupees/10 grams

(Updates to trends in the physical market)

* Spot gold lower at $906.30 an ounce XAU=

* London Brent crude up at $124.66 a barrel LCOc1

* Rupee weaker at 42.44 per dollar INR=IN * U.S. personal income and spending data at 6 p.m. <MI/DIARY>

MUMBAI, Aug 4 (Reuters) - India's gold's prices were little changed on Monday amid higher crude oil, but buyers stayed on the sidelines as last week's correction had raised hopes of more falls ahead, dealers said.

"Now buyers will be interested only if prices fall closer to 12,000 rupees per 10 grams," said Prithviraj Kothari, director of Riddisiddhi Bullions Ltd, a large Mumbai-based wholesaler.

Foreign gold, that guides the local market, stayed near the previous session's levels supported by oil that jumped on supply worries after a tropical storm threatened the Gulf of Mexico and Iran's nuclear programme worried the Western world.

Gold generally tracks crude oil as the latter signals inflation while the metal negates it.

In the local market, prices hovered around 12,500 rupees per 10 grams -- a level buyers had been eyeing -- but the month-low dip last week to lower levels had been bought well and met near- term demands.