Mumbai: India gold traders continued to seek bargains on Tuesday to stock for weddings and upcoming festivals as prices fell from a four-week high reached in the previous session, dealers said.
“Demand is reasonable today, we did about 150 kgs since morning at around $1,127-1,128 levels, yesterday demand was equally good...” said a dealer with a state-run bank in Mumbai.
International gold, which guides the domestic markets, was trading at $1,124.70/1,125.70 an ounce as against the previous close of $1,129.70/1,131.70. It touched a four-week high of $1,133.20 an ounce in the last session.
“They are buying at every dip, they are piling up stocks in anticipation of demand, (buying) interest may get revived at $1,105-1,110...,” said another dealer with a state-run bullion dealing bank.
Early firmness in rupee also aided sentiment, they added.
“My sense is that the rupee strength is also drawing gold buyers this time around,” said the first dealer.
The Indian rupee stayed firmed in afternoon trade, but was slightly away from the 19-month high touched in early deals.
A firm rupee makes the dollar-quoted asset cheaper.
Currently, the wedding season is underway in the world’s largest consumer of the yellow metal, with gold-buying festivals like Akshaya Tritiya slated in May.