MUMBAI (Commodity Online): With the gold prices hovering around $1040 per ounce levels, Indians started flocking to jewellery shops now.

This week all jewellery shops reported good sales and it is continuing. People are all waiting for $1,040 (an ounce levels), which is encouraging them.

International gold prices, which guide the domestic market, steadied around $1,040 an ounce, staying above three-week lows hit the day before when the dollar strengthened against the euro.

However, a weak rupee, which makes the dollar-quoted asset expensive, weighed on sentiment.

The Indian rupee trimmed its fall from three-week lows on Wednesday afternoon tracking a brief recovery in local shares, but weakness in other regional currencies continued to weigh on sentiment.

Rupee which has gone substantially up is affecting sentiment adversely.

Some traders were stationed on the sidelines to replenish stocks for weddings, that would last till December.

There could be good buying if prices fall to $1,030/1,031, said dealers.