Gold demand turns dull as prices jump

Gold demand turns dull as prices jump
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First Published: Fri, Apr 24 2009. 02 26 PM IST
Updated: Fri, Apr 24 2009. 02 26 PM IST
Mumbai: India’s gold demand turned subdued on Friday, after having picked up in the past few sessions as prices rose, dealers said.
“We have hardly sold 10 kgs since morning as prices have jumped... till yesterday there were buyers,” said a dealer with a state-run bank in Mumbai.
The most traded June contract extended gains for a third day and was 0.34% higher at Rs14,648 per 10 grams at 2:03pm as China revealed its huge gold reserve rise.
Gold prices have risen about 3.7% in the past three weeks.
Dealers said a strong rupee, which makes the dollar denominated asset cheaper, kept a lid on gains.
Indian consumers, who bought around 49 tonnes of gold for last Akshaya Tritiya, had been purchasing as prices fell about 13% from an all-time high of Rs16,040 struck on 20 February.
But, a sudden surge in prices prevented traders from entering into fresh deals.
“I have plenty of advance orders at $880 (an ounce level),” said another dealer with a private bank.
Akshaya Tritiya, which falls on 27 April, is the second-most auspicious day to buy gold after Dhanteras, traders say.
Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15pm.
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First Published: Fri, Apr 24 2009. 02 26 PM IST
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