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Gold buyers at bay, wait for more price fall

Gold buyers at bay, wait for more price fall
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First Published: Thu, Feb 26 2009. 02 46 PM IST
New Delhi: India’s gold buying slowed on Thursday as buyers preferred to remain on the sidelines awaiting further price declines overseas, traders said.
They also expect the influx of scrap metal into the market to ease.
“Prices are too high compared to Rs11,500 a few months back,” said Mayank Khemka, managing director with Khemka International in Delhi, adding “prices are high for even jewellers to stock up.”
“Our customers would be interested in buying below Rs14,000 level,” said Khemka, adding “we might see huge buying below Rs13,000.”
There exists a price disparity of around Rs200 between local gold and bank gold, Khemka added.
India’s gold demand has slowed to a trickle in the wake of prohibitive prices and a weaker rupee, which has made the dollar-quoted yellow metal more expensive.
The benchmark gold April contract was 0.92% lower at Rs15,351 per 10 grams at 1:38pm, after having struck Rs16,040 last week.
“There is no need for jewellers to stock as there is hardly any demand and also a big inflow of scrap,” Khemka added.
“There is a discount of Rs375 in Kolkata,” said Harshad Ajmera, proprietor of JJ Gold House.
Foreign gold, which guides the local market, eased a touch to trade at $954.30 as the dollar held onto gains against the yen on Thursday and investors took profit from an 11-month high hit last week. Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15pm.
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First Published: Thu, Feb 26 2009. 02 46 PM IST
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