Mumbai: India spot gold prices edged higher on Wednesday afternoon on expectations of limited supplies of the yellow metal ahead of festivals next month, dealers said.
“We have given indents but are not getting stocks. We hope to receive stocks in a couple of days, and this is supporting prices,” said a dealer with a state-run bullion-dealing bank.
Scotia Mocatta quoted gold at 16,800 rupees, up Rs40 from its previous close of Rs16,760.
Disruption of flights in Europe has hit gold shipments to India, potentially pushing up local prices ahead of a gold-buying festival next month, traders and dealers said.
However, they added, demand remained weak for a third session in a row as traders sought lower prices.
“There were a few stray deals yesterday at $1,152 (an ounce) but we aren’t hearing much from our clients,” said another dealer with a private bank.
International gold was trading $1,142.75/1,143.75 an ounce as against the previous close of $1,139.50/1,141.50.
However a strong rupee, which makes the dollar-quoted asset cheaper, kept the upside limited.