Mumbai: India gold traders continued to stay away from striking fresh deals on Wednesday expecting a fall in prices, dealers said.
“The market is quiet, no one wants to get stuck with high-priced stocks. There could be interest if prices fall to Rs14,700,” said a dealer with a private bank in Mumbai.
The most-active October contract traded 0.35% higher at Rs15,017 per 10 grams at 1:18pm.
Dealers said traders would seek to stock the yellow metal for festive demand.
A weak rupee, which makes the dollar-quoted gold expensive, was further weighing on sentiment, they added.
The Indian rupee inched lower as refiners and importers pumped up dollar buying to meet month-end import commitments, but a firm start in local shares prevented a further decline.
India is celebrating Ganesh Chaturthi, the first in the series of festivals, which is expected to revive gold’s physical off take