Mumbai: India’s gold demand was weak on Tuesday as buyers stayed away on hopes of more falls, traders said.
“We are not able to sell even one gram of gold. The local demand is very bad and everyone is waiting for lower prices,” said Ranjeeth Rathod, a director with Chennai-based wholesaler, MNC Bullion.
The benchmark April contract recovered from a low of Rs15,109 per 10 grams to trade Rs15,168, still down 0.15%, at 1:50pm.
Overseas gold dipped 0.4% pressured by scrap dealers selling to lock in profits around $920 per ounce, but a rise in Asian equities suggested some recovery in risk appetite.
Traders said a fall in prices to a minimum of $875 an ounce would revive demand ahead of the weddings in the first week of April.
“All traders have placed advance orders in between $875 and $905 for fresh buying,” said Harshad Ajmera, proprietor of JJ Gold House in Kolkata.
Local gold was cheaper than bank gold, signifying weak demand and profit-taking by traders. “There is disparity of around 200 rupees between bank and local gold,” said Rathod.