Mumbai: India’s low-key gold demand faded on 5 December with prices strengthening above the psychological Rs10,000 per 10 grams mark and traders moving to the sidelines awaiting dips, dealers said. “Demand for gold is poor...” said Satish Bansal of M.D. Overseas Ltd, a large precious metals importer in New Delhi.
The demand seen for gold earlier this week below the $800 an ounce level too “was not that great,” Bansal said. A dealer in a private bank in Mumbai said there were few advance orders in the $790-795 an ounce range.
Overseas gold, that guides local prices firmed up after scaling $800 an ounce the previous day amid expectations of a rate cut in the U.S. next week. But year-end winding down kept gold from rising much, making physical gold traders expect prices to fall.
A wholesaler in Ahmedabad, Dipen Mandalia of LKS Bullion (Import & Export) Pvt Ltd, said the local market was discounted by around Rs50 per 10 grams over what the banks were quoting.
Scrap jewellery sales and bars have been discounting the local market as prices above Rs10,000 are seen as good for taking profits.
Following was the price of .995 gold in the spot market in Rs10 per grams at 1:15 p.m.
Bank Wednesday Tuesday
Scotia 10,400 10,200
Following are gold prices in Rs10 per grams on the Multi Commodity Exchange of India Ltd. at 1.26 p.m.
Contract Current price Net change
Feb 10,304 18
Apr 10,383 25