Mumbai: India gold prices retreated from record highs on Thursday triggering a slight pick-up in physical offtake, but a weaker rupee weighed on sentiment, restricting a further downside in the yellow metal, dealers said.

“There were a few trades with decent quantity, but it is not as per our expectations as the weak rupee is hindering the extent of the fall (in prices),” said Pinakin Vyas, chief manager treasury, IndudInd Bank in Mumbai.

“Markets would get activated at Rs15,500-15,800,” said Vyas.

The most-traded December gold contract was 0.05% higher at Rs17,114 per 10 grams at 3:42 pm, after hitting a high of Rs17,197 earlier.

The contract had struck a record high of Rs17,236 on Wednesday.

A weaker rupee, which makes the dollar-quoted asset expensive, kept the downside limited in gold.

The Indian rupee fell as a weaker sharemarket, gains in the dollar and concerns authorities may start looking at steps to temper surging capital inflows weighed on sentiment.

“There are a few orders below $1,100 (an ounce),” said another dealer with a state-run bank.

Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15 pm.