Gold recovers, buyers stay away

Gold recovers, buyers stay away
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First Published: Thu, Mar 05 2009. 01 29 PM IST
Updated: Thu, Mar 05 2009. 01 29 PM IST
Mumbai: Gold recovered from the previous day’s lows on Thursday, stifling demand and keeping off buyers, with traders saying only a dip below Rs14,000 mark is expected to rekindle buying interest.
“Demand is poor as prices are too high,” said Mayank Khemka, managing director of Khemka International, a New Delhi-based bullion importer, “they are looking at a level below Rs14,000.”
“Still, there is disparity of Rs300 between the bank gold and local gold,” Khemka added.
The benchmark April gold contract was 1.23% higher at Rs15,175 per 10 grams at 1:34pm, after hitting a low of Rs14,966 in the previous session.
Demand is close to nil since months now and old gold is also coming in, said Piyush Acharya, manager at Parker Agrochem Exports in Ahmedabad.
“Dollar prices are not that high...rupee is making it expensive,” Acharya added.
A weak rupee makes the dollar quoted gold expensive.
The rupee weakened on Thursday as a stronger dollar overseas, higher non-deliverable forwards and losses in domestic shares combined to weigh down sentiment.
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First Published: Thu, Mar 05 2009. 01 29 PM IST
More Topics: Gold | Bullion | Commodity | Markets | India |