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Gold edges down, traders await more falls

Gold edges down, traders await more falls
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First Published: Fri, May 22 2009. 02 21 PM IST
Updated: Fri, May 22 2009. 02 21 PM IST
Mumbai:
India’s gold prices edged lower on Friday pressured by a strong rupee and overseas leads, but well-stocked local traders avoided fresh positions amid the wedding season expecting falls ahead, dealers and traders said.
“There is no demand since yesterday, there are no enquiries as well,” said a dealer with a private bank in Mumbai.
“There is pricing pressure and demand would not revive until there is good correction,” said another dealer with a state-run bank.
The most active June contract was 0.19% lower at Rs14,466 per 10 grams at 1:51pm, after hitting a low of Rs14,462 rupees in early deals.
The Indian rupee trimmed gains after strengthening past $47 to a five-month high, but sentiment was upbeat following the US unit’s weakness overseas and expectations for a jump in foreign inflows.
Overseas gold, which guides the local market, edged down on profit-taking after a rally this week, but hovered near a two-month high, supported by safe-haven demand as the dollar remained weak.
Traders have been stocking the yellow metal after better-than-expected Akshaya Tritiya sales to meet wedding demand.
India’s wedding season will last till June end.
“We expect buyers to come in below Rs14,000 levels,” said Haresh Acharya, head of bullion desk, Ahmedabad-based Parker Agrochem.
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First Published: Fri, May 22 2009. 02 21 PM IST
More Topics: Gold | Bullion | Futures | Commodity | Rupee |