Mumbai: India gold traders were reluctant to enter into fresh deals on Monday as international prices were near the record high seen last week, seeking declines to stock up for festivals due later in the week, dealers and traders said.
“Demand (wholesale) is not there due to last week’s surge in prices,” said a dealer with a state-run bank in Mumbai. “There is absence of buying on retail counters as well.”
“There is no business since Wednesday, there was some buying before that,” said Daman Prakash Rathod, director at Chennai-based wholesaler MNC Bullion.
International gold ticked higher, holding near last week’s record, but a rebound in the U. dollar and the absence of Japanese speculators could limit gains.
A weak rupee, which makes the dollar-quoted asset expensive, also weighed on sentiment, they added.
The Indian rupee extended losses in afternoon trade as the dollar continued to rise further against major units while local shares also pared some early gains.
Traders and dealers said underlying demand still remained strong, with Dhanteras and Diwali slated later in the week, when gold sales pick up.
“There could be buying if prices fall to Rs15,500,” said the dealer.
India’s gold imports in September provisionally fell 30%, the smallest year-on-year decline in five months, as steady prices and the festival season attracted more buyers.