December 4, 2008 / 9:06 AM / 10 years ago

UPDATE 1-India gold demand moderates, buyers await falls

(Updates to trends in the physical market)

* Spot gold down at $766.95 an ounce XAU=

* London Brent crude down at $44.35 a barrel LCOc1

* Rupee firm at 49.8150 per dollar INR=IN

* U.S. weekly jobless claims at 1330 GMT [MI/DIARY]

MUMBAI, Dec 4 (Reuters) - Indian gold demand moderated on Thursday, with easing prices raising hopes of bigger falls, traders said.

“Demand is moderate but buyers want prices to come down at around $740 (an ounce) levels,” said Mayank Khemka, managing director at Khemka International Pvt Ltd, a New Delhi-based gold trading company.

Gold eased as the dollar rose against the euro ahead of an interest rate decision by the European Central Bank later in the session, while oil declined by more than 2 percent. See [ID:nL4541906]

Dealers said there had been huge buying from traders at $680-$750 an ounce in October and November in order to stock the yellow metal.

“There has been no visible enthusiasm to buy gold ever since prices moved up,” said Daman Prakash, director at Chennai-based MNC Bullion Pvt. Ltd.

Traders are still waiting for prices to fall below $750 levels, said Mahendra Bafna, manager at Riddhisiddhi Bullion, adding banks and traders still have adequate stocks.

Following were the prices being quoted by Axis Bank in rupees in the spot market at 1:15 p.m. INBULL03:

Thursday Wednesday

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Gold .999/10 grams 12,426 12,363

Silver .999/kg 16,035 15,785

Following were prices in rupees on the Multi Commodity Exchange of India Ltd. at 2:24 p.m. <0#MAU:>:

Contract Current price Net change

======================================================

Feb gold 12,400 -78

Mar silver 16,637 -39

Reporting by Siddesh Mayenkar; Editing by Sunil Nair

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