India gold demand cooled off on Tuesday afternoon after picking-up in the previous session, as traders waited for further price dips to stock up for the wedding season, which starts in April, traders and dealers said.

India gold futures opened a tad lower on Monday tracking a firm rupee, which makes the dollar-quoted asset cheaper, analysts said.

The Reserve Bank of India (RBI), which has increased its gold holdings to diversify its reserves, looks set to be a buyer again when the International Monetary Fund begins selling 191.3 tonnes of the precious metal amid volatility in major currencies.

The government raised personal income tax slabs for 2010/11, which could result in a net tax saving of 20,000 to 50,000 rupees for those earnings above 300,000 rupees, giving a boost to the country's rising consumption, experts said.

India's gold-buying was slack for a second day running as the yellow metal jumped to its highest level in a month, but a strong rupee aided sentiment, dealers said on Monday.

India gold futures revisited the psychological 17,000 rupees mark as a weaker dollar overseas enhanced the yellow metal's appeal as an alternative investment, analysts said.

Commodity markets are on course for their strongest year since 1973, lifted by oil's biggest annual gains in a decade and a 140 percent surge in copper prices

India's gold futures were slightly lower in thin trade on Wednesday tracking a firm dollar, analysts said. The benchmark February gold on the MCX was at 16,682 rupees per 10 grams, down 0.29 percent at 12:09 p.m.

India's gold futures opened slightly higher in early trade on Monday tracking international cues, analysts said. The benchmark February gold on the MCX was at 16,894 rupees per 10 grams, up 0.42 percent at 10:57 a.m

India's spot gold prices fell on Tuesday afternoon in the absence of buyers due to higher prices, dealers said. Spot gold prices rose in the previous session after having fallen over 2 percent last week.

India gold futures edged higher on Wednesday helped by an early weakness in the rupee and investors awaited comments from the Federal Reserve for direction, analysts said.

India's gold traders continued to pick bargains on Thursday as prices stayed near two-week lows, even as overseas suppliers ran with thin stocks ahead of the year-end, dealers said.

India gold prices extended their fall for a third day on Monday, triggering a slight pick-up in physical offtake in the middle of the wedding season that will last till December-end, dealers said.

India's gold February contract struck a fresh record high on Thursday morning at 18,345 rupees per 10 grams following strong overseas markets and a weaker dollar.

India February gold struck a fresh record high of 18,083 rupees per 10 grams on Wednesday tracking global leads and a weaker dollar.

The Multi-Commodity Exchange of India (MCX) has introduced the exchange of futures for physicals (EFP) transactions in 12 commodities from Tuesday, the bourse said in a release.

India gold traders continued to stock for weddings in anticipation of a further rise in near-record prices, but the flow of scrap sales eased, dealers said on Wednesday.

India gold hitting a fresh record high on Tuesday attracted scrap sales, but domestic demand abated after a slight pick-up late in the previous session, dealers said.

India gold demand edged up on Friday as prices eased from their record highs struck in the previous session, but flow of scrap eased, dealers said.