MUMBAI: India gold extended losses on Tuesday afternoon tracking weak global markets. Well-stocked domestic buyers have now entered the market to take advantage of lower prices.
"Demand (for gold) is better right now," said Ketan Shroff, director at Pushpak Bullions Pvt Ltd, a large trader in Mumbai.
If prices dip below the $750 (an ounce) level we may see additional demand coming in, he added.
Gold eased on Tuesday as oil traded below $48 a barrel and world stock indices dropped further. Prices are seen remaining under pressure.
Dealers say the softening Indian rupee has insulated local rates from the declines seen in international markets.
India, the world's biggest consumer of the yellow metal, imports most of its gold requirement and a weaker rupee makes imports of the dollar-quoted asset expensive.
The Indian rupee fell past 50.60 against the dollar to a record low on Tuesday afternoon as losses in the domestic equity market raised concerns of further foreign fund outflows.
"Buyers are still stuck with high premium stocks," said a dealer with a Mumbai-based private bank.