Mumbai: India gold traders continued to pick bargains on Monday afternoon as prices fell further and as they sought to replenish stocks for festivals starting August, when demand goes up, dealers said.
“Good fall has led to good demand... there were deals at all levels be it $1,200/1,190/1,186 (an ounce),” said a dealer with a private bank in Mumbai, which deals in bullion.
International gold came under pressure as the euro fell and investors fretted over signs of deflation in the United States and renewed concerns over the eurozone’s debt problems, traders said.
International gold was trading $1,191.45/1,912.45 an ounce at 1:07pm, as against the previous close of $1,193.10/1,194.10, extending Friday’s more-than-1 percent fall, when gold hit its lowest level in more than one week.
“My order sheet is showing advance orders below $1,185,” said another dealer from a state-run bullion dealing bank.
However, a weaker rupee, which makes the dollar-quoted asset expensive, weighed on the sentiment, they added.
The Indian rupee slipped to a two-week low, weighed down by choppy stocks and a halt to the euro’s rally against the dollar.
India, which accounts for more than 20% of global demand, will celebrate the Hindu festival of Raksha Bandhan on 24 August, and Janmasthami and Ganesh Chaturthi in September.
The world’s largest consumer of bullion may import 500-550 tonnes of gold in 2010, up from 480-490 tonnes a year earlier, the head of a trade body said on Thursday.