Mumbai: India’s gold traders continued to pick bargains on Thursday as prices stayed near two-week lows, even as overseas suppliers ran with thin stocks ahead of the year-end, dealers said.
“There has been activity since the start of the week and it’s continuing, people are buying on dips, I filled a few orders in the range of $1,120-1,130 an ounce today,” said a dealer with a private bank in Mumbai.
Gold February contract on the Multi Commodity Exchange traded near their two-week low at Rs17,096 per 10 grams. The contract had struck a two-week low of Rs17,035 in the previous session, a level last seen on 27 November.
A weak rupee, which makes the dollar-quoted asset expensive, weighed on sentiment, they added.
Dealers said overseas gold suppliers were running with thin stocks before the year-end, but still had enough to cater to Indian demand in case of a price drop.
“Suppliers have been cautious, they are minimising stocks to reduce risk levels before their closure of books,” said another dealer with a private bank in Mumbai.
“They don’t want to provide provisioning to mark-to-market margins for the hugely priced stocks,” said a third dealer with a private bank.