Bhubaneswar, Oct. 28 -- Indian jewellers are reportedly holding back gold purchases ahead of the festive season, expecting prices to fall further after a recent decline, according to the country's largest precious metals refiner, MMTC-PAMP India.

Samit Guha, chief executive officer and managing director of MMTC-PAMP, a joint venture between state-owned MMTC Ltd and Swiss refinery PAMP SA, said large jewellery chains had yet to return fully to the market. Buying has mainly been driven by small and mid-sized jewellers, some of which have placed repeat orders.

Gold fell below $4,000 an ounce last week for the first time since July. Prices have declined around 24% since the US-Iran war began in late February, after reaching a record above $...