Mumbai: India gold prices edged higher on Wednesday tracking overseas leads, while domestic demand slowed as well-stocked traders geared to meet demand of the wedding season nearing its end, dealers said.
The most active August contract was 0.41% higher at Rs14,667 per 10 grams at 3:01pm.
Overseas gold, which guides the domestic market, rebounded above $960 an ounce as investors bought the metal as a hedge against dollar weakness, with other commodities such as oil and industrial metals also firming.
“Gold demand has slowed now. It was there last week,” said Shekhar Jog, partner of Sangli-based V S Bullion, which caters to markets in western Maharashtra.
Traders would slow their buying now as the wedding season neared an end, but could witness a revival in August, when traders stock to meet festival demand.
Traders would not buy now and return only in August, said a dealer with a state-run bank in Mumbai.