India's gold demand abated on Friday as prices struck a fresh high, after a slight pick-up seen in offtake in the previous session, dealers said.
"I did 40-55 kgs yesterday when prices were at around $1,135-1,140 (an ounce), but today there is nothing on domestic front," said a dealer with a state-run bank in Mumbai.
The most-traded December gold contract hit a fresh record high at Rs17,284 per 10 grams, before trading 0.12% higher at Rs17,251 at 2.15pm tracking overseas leads.
Dealers said traders were stationed on the sidelines seeking lower prices to stock for the ongoing wedding season.
"I have a few orders below $1,125 (an ounce)," said another dealer with a state-run bank in Mumbai.
Dealers said their business has declined by about 50% on year as high prices dented demand.
Jewellery demand in India, the world's largest consumer, fell 42% to 111.6 tonnes in the third quarter to September, while total demand, which comprises jewellery and retail investment demand, fell 49% to 137.6 tonnes.
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