Gold prices up; traders stay away

Gold prices up; traders stay away
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First Published: Mon, Jul 27 2009. 01 31 PM IST
Updated: Mon, Jul 27 2009. 01 31 PM IST
Mumbai: India gold prices edged higher on Monday supported by a weak dollar and crude oil, with traders reluctant to take new positions in the middle of a slack season, dealers said.
The most-active August gold contract was 0.26% higher at Rs14,938 per 10 grams at 1:50pm, after hitting high of Rs14,961 earlier.
The dollar slipped against the euro as markets looked ahead to second quarter economic growth data from the United States, the world’s largest economy.
Oil rose for a third session, riding the tailcoat of rallying Asian stocks toward $69 a barrel as investors read recent positive corporate earnings as a further sign of an economic recovery that will stoke fuel use.
“Demand has not still picked up as prices are hovering around Rs15,000,” said a dealer with a private bank in Mumbai.
A seasonally slack period is underway in India for gold trade due to monsoons, when fewer weddings take place.
“Traders are not comfortable at $950 (an ounce), we have enquiries in the range of $930-935,” said another dealer with a state-run bank in Mumbai.
Dealers said physical off-take may pick up by August end, when traders would seek to replenish stocks to meet festive demand.
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First Published: Mon, Jul 27 2009. 01 31 PM IST
More Topics: Markets | India | Commodities | Gold | Bullion |