India Gold Steady Near Over 1-Wk High; Buyers Stay Away.

India gold futures were almost steady near its highest level in over a week on Friday afternoon, following overseas leads, but traders were unwilling to place new positions after the sudden price jump, dealers said.

"It suddenly went up yesterday, to the last week's level. Prices took a big jump after a long time," said a dealer with a state-run bullion importing bank in Mumbai.

At 1:58 p.m., the most-active gold contract for April delivery was trading 0.41 percent lower at 20,260 rupees per 10 grams. The contract had struck its one-week high of 20,360 rupees in the previous session, a level last seen on Jan. 24.

"Supplies could improve in coming weeks, premiums might ease by 50 cents," said another dealer with a state-run bank.

International gold slipped on Friday after climbing more than 1 percent in the previous session, and as investors were cautious ahead of key monthly U.S. jobs data that could dent bullion's appeal.

"There could be clarity with prices after the U.S. data," said the second dealer.

Gold imports in India rose 18 percent in January to 40 tonnes provisionally, and next month's wedding season could further boost demand, head of a trade body said.

India accounts for 20 percent of the global demand for jewellery, and the next marriage season in the country will kick off in February.

Winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.

Gold is widely given in religious celebrations and weddings in India.

Source : sify.com