Mumbai: India’s gold demand picked up on Wednesday after days of lull as prices fell further and traders sought to replenish their stock for the upcoming festival season, dealers said.
“There is some business after yesterday’s decline,” said a dealer with a private bank in Mumbai. “Traders are building stocks ahead of festivals.”
The most-traded August gold contract was 0.16% lower at Rs14,731 at 2:17pm on weak crude oil, dimming the yellow metal’s appeal as a hedge against inflation. A firm dollar overseas also weighed on prices.
The contract had lost 1.2% in the previous session.
Oil slid below $67 a barrel, extending losses from the more than $1 retreat the day before, on renewed concerns over the US economy after a drop in consumer confidence and bearish API crude data.
Dealers and traders hope that upcoming festivals and weddings, which will start by August-end, would revive sagging gold demand already reeling under the throes of an economic slowdown and high prices.
“I have plenty of advanced orders in between $925-930 (an ounce),” said another dealer with a state-run bank.