Mumbai, 4 September India’s wholesale demand for gold was low today, but a jeweller in Bangalore said sales were good for upcoming festivals and weddings.
Gold prices hovered around the psychologically important level of Rs9,000 per 10 grams, with most sellers quoting a touch above it.
Prices were supported by a rise in overseas gold that was affected by firmer crude oil markets, while in the local market, a slightly weaker rupee added to gold’s gains.
“Ever since prices jumped in the last two consecutive Fridays, demand has been weak,” said Ganesh Agarwal, a Chennai-based wholesaler.
“People are waiting for prices to fall below Rs9,000,” Agarwal added.
However, a jewellery store manager in Bangalore said sales were “okay.”
“It is the season time... people are buying for marriages and festivals,” said S.P. Sharma, manager at Neelkanth Jewellers in the software hub of India.
Sharma said most of the jewellery sold was of 22 carat gold that quoted at Rs853 per gram, which was seen as a good price compared to higher prices a few months ago.
India’s busy season for gold is on, but demand at wholesale level is mostly sporadic and seen at dips. Retail sales have been described as “good” by several jewellers and most say it is set to get better as major Hindu festivals draw closer. Following was the price being quoted by a bullion bank in rupees per 10 grams for .995 gold at 1:20 p.m.