"Demand for gold will be strong till end-April due to themarriage season," said Pavan Chokshi, a trader in Ahmedabad, the main city in Gujarat.

Gujarat is a major bullion trading centre. Gold was quoted at around Rs 4,240 ($99.79) per 10 grams on Monday, up from Rs 4,220 on Friday.

India is the world's largest gold consuming centre and imports all its requirements. Local demand for the precious metal is mostly generated by weddings and festivals.

Traders said they expected retail demand to pick up further in the marriage season which began in early December. "Gold prices have already gone up from last week and Ithink there will be a further increase in the next few days," said trader Anurag Zaveri.

He said speculative purchases of gold had risen due to softness in international bullion prices. "Even the jewellery manufacturers arebuying more thantheir requirements," Zaveri said. "Prices will go up to around Rs 4,300 (per 10 grams) in the coming days."

Gold tracked sideways at $287.0 per troy ounce in Europe on Monday, dealers said.