MUMBAI, Sept 14 (Reuters) - India's physical gold demand remained sluggish on Monday 14 September as traders were reluctant to enter into fresh deals as the yellow metal hovered near the keenly-watched $1,000-an-ounce mark, dealers said.

"We are not getting good response at $1,000 (an ounce). There are enquiries, but nothing is materialising," said Pinakin Vyas, chief manager-treasury, IndusInd Bank, in Mumbai.

The physcial offtake remained weak last week as prices jumped above $1,000 an ounce, when a weak dollar overseas supported the yellow metal.

At 2:23 p.m., international gold XAU= traded at $995 an ounce.

Dealers expects traders to pick bargains if prices fall by over 1 percent.

"There are many orders below $990 (an ounce)," said another dealer from a state-run bank.