India Gold Traders Stay Away Due to Price Peak

Gold traders in India, the world's biggest buyer of bullion, stayed away from fresh physical buying as futures prices extended gains to near last week's peak caused by global markets trend, dealers said.

* Traders were reluctant to get stuck with high-priced stock in the middle of India's wedding season, which will last into December, with spot quotations over 29,000 rupees per 10 grams.

* Demand is zero, there are no deals in the market, said Haresh Acharya, head of the bullion desk at Ahmedabad-based wholesaler Parker Bullion, adding the 27,500 rupees level could draw more buying.

* The most-active gold futures contract for December delivery on the Multi Commodity Exchange (MCX) was 0.12 percent higher at 28,920 rupees per 10 grams, after touching a high of 29,048 rupees -- not far from last week's contract high of 29,123 rupees.

* Global gold edged up, extending gains from the previous session, as change in the political leadership in Italy and Greece rekindled hopes for a resolution to the euro zone's debt crisis, fueling risk appetite in markets.

* Premiums charged by Indian banks for gold bars over London prices were steady at $1-1.5 an ounce, making the end price of the yellow metal higher.