India gold demand low as prices harden

India gold demand low as prices harden
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First Published: Fri, Apr 04 2008. 03 20 PM IST
Updated: Fri, Apr 04 2008. 03 20 PM IST
Mumbai: Indian demand for gold remained low on Friday as prices inched up ahead of the US jobs data and buyers waited for corrections that could give the market another wave of buying since prices dipped from life highs last month.
”Its a bit dull... there were good sales when prices were around Rs11,600 per 10 grams,” said Amit Mittal, senior trader at M.D. Overseas Ltd in New Delhi.
Foreign gold, that guides the local market, rose marginally as it awaited cues from the employment report that is expected to show the economy shed jobs.
The market is expected to scrutinize the jobs report for clues on interest rates moves that affect gold prices. Lower rates increase gold’s appeal as an alternate investment.
Seasonal demand is expected to get buyers into the market if prices stay steady.
”Now there is demand from actual gold users,” said Ganesh Agarwal of Shiv Sahai & Sons, a large wholesaler in Chennai.
India’s wedding season, now on, will last till the end of May and softer or stable prices could improve sales that has so far remained bleak.
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First Published: Fri, Apr 04 2008. 03 20 PM IST
More Topics: Gold | India | Sales | Markets | US |