Mumbai: Gold prices were a tad higher on Tuesday afternoon in line with overseas markets, prompting traders to take a backseat, awaiting a price fall to stock up for the wedding season, dealers said.
“There is no appetite for gold at current prices, traders want prices to go down further,” said a dealer with a state-run bullion dealing bank in Mumbai.
The most-active gold contract for April delivery on the Multi Commodity Exchange (MCX) was trading 0.25% higher at Rs 20,213 per 10 grams at 1:30pm, recovering from the recent one-week low of Rs 19,952 struck on 3 February.
“There are advanced orders in the range of $1,327-1,330 (an ounce),” said another dealer with a private bank.
Gold imports in India rose 18% in January to 40 tonne provisionally, and wedding season could further boost demand, the head of a trade body said.
India accounts for 20% of global demand for jewellery, and the next marriage season kick offs in February.
Winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.