Gold demand in India, the world's top consumer of the metal, was moderate on Wednesday as some jewellers chose to restock despite a price rise, dealers said.
At 4:35 p.m., the most-active February gold on the Multi Commodity Exchange was up 0.18% at Rs 27,706 per 10 grams, after rising 1% in the previous session.
"Demand is moderate. Compared to last week, it has improved, but still, many potential buyers are waiting for a price correction," said Kapil Kumar Chokshi of Chokshi Arvind Jewellers in Mumbai.
International spot gold traded steady on Wednesday, retaining most of the previous session's strong gains on encouraging economic data from the United States and Europe, and rising concerns on Iran also helped support sentiment.
The Khar Mass period has been weighing on demand, dealers said. Khar Mass is a month in the Hindu calendar from December 16 to January 14 that is considered inauspicious for gold-buying and starting new ventures.
The rupee, which plays an important role in determining the landed cost of the dollar-quoted gold, rose to 53 to the dollar, up from 53.21/53.22 at the close on Tuesday, reflecting dollar sales by some foreign banks.
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