Mumbai: Gold rose a tad on Monday afternoon, recovering partly from their lowest level in 13 weeks, prompting physical buyers to retreat as traders awaited more falls ahead ahead of the wedding season next month, dealers said.
“It’s steady today, I covered for only 40-50 kgs at $1,332-1,337 (an ounce),” said a dealer with a state-run bullion importing bank in Mumbai.
The most-active gold for February delivery was trading 0.13% higher at Rs 19,953 per 10 grams, recovering from a low of Rs 19,515 struck on Friday, a level last seen in early November.
Bank officials said supply remained tight, which could push premiums higher.
“We are not getting metal on time. We could have had a much better January in terms of sales, had it been not for supply issues,” said the dealer.
January gold imports are seen rising on softer prices and as food inflation boosts farm incomes, fuelling demand for gold in the world’s biggest market for the metal.
The median forecast in a Reuters poll of 10 industry experts showed gold imports this month may have risen 6.6% from a year earlier to 36.25 tonnes.
The winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.
In India, which accounts for 20% of global demand for jewellery, gold is widely gifted in religious celebrations and weddings.