Gold prices down; buying recedes

Gold prices down; buying recedes
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First Published: Fri, Jun 12 2009. 02 17 PM IST
Updated: Fri, Jun 12 2009. 02 17 PM IST
Mumbai: India gold prices edged lower following overseas markets, with domestic buying appetite receding as the wedding season neared its end, dealers said.
The most active August contract was 0.42% lower at Rs14,604 per 10 grams at 1:48pm.
Overseas gold, which guides the domestic market, also fell as a stronger dollar and firmer equity markets eroded the precious metal’s appeal as an alternative investment.
“Enquiries are coming in but nothing is materialising. Even weddings are coming to an end,” said a state-run bank dealer in Mumbai. The current wedding season in India ends in June.
However, there could be intermittent buying if prices fall by around 5%, traders said.
“We could see bouts of buying if prices fall Rsto 14,000,” said another dealer with a private bank in Mumbai.
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First Published: Fri, Jun 12 2009. 02 17 PM IST
More Topics: Markets | India | Gold | Commodity | Money |