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Gold prices up; traders stay away

Gold prices up; traders stay away
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First Published: Tue, Jun 09 2009. 02 14 PM IST
Updated: Tue, Jun 09 2009. 02 14 PM IST
Mumbai: India’s gold prices edged higher on Tuesday on overseas leads, with well-stocked traders unwilling to take positions as the wedding season neared an end, traders said.
The most active August contract was 0.09% higher at Rs14,614 per 10 grams at 1:52pm, after hitting a high of 14,640 in early deals tracking overseas markets.
Overseas gold, which guides the domestic market, edged higher trading around $950 as the dollar tracked back from recent gains, improving the precious metal’s appeal as a currency hedge. “There is not much demand now. Buying was last seen on Friday when market had dipped,” said Satish Bansal, director with Delhi-based bullion importer MD Overseas.
Gold demand had picked up on Friday when prices dipped more than a percent locally.
“Prices are quiet high now and even rupee depreciated for the last two sessions and even weddings would end now,” said Bansal.
A weak rupee makes the dollar-denominated asset expensive for domestic traders.
Traders would slow their buying now as wedding season neared an end, but could witness a revival in August, when traders stock to meet festival demand.
“June and July have been traditionally slow months for gold sales, so by August demand should pick up,” said Mayank Khemka, managing director with Khemka International, another Delhi-based bullion importer.
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First Published: Tue, Jun 09 2009. 02 14 PM IST
More Topics: Markets | India | Gold | Commodity | Bullion |