Mumbai: India’s gold traders continued to replenish stocks as prices stayed below the keenly watched $900 an ounce level on Monday amid the wedding season, dealers said.
“Traders are stocking again for weddings after Akshaya Tritiya as prices are still below $900 an ounce (or around Rs14,500 per 10 grams),” said a dealer with a private bank in Mumbai.
“As long as prices stay below $900 an ounce, demand would continue to trickle in,” said the dealer.
India’s wedding season will continue till next month.
RiddhiSiddhi Bullions, a Mumbai-based bullion trading company, sold 565.2 kg of gold and 3,000 kg of silver on 30 April as traders stocked inventory for the wedding season.
Indians bought 45 tonnes of gold during this year’s Akshaya Tritiya festival, down 8% from last year, the World Gold Council said last week.
The most traded gold June contract edged higher to trade at Rs14,321 per 10 grams at 1:15pm, tracking overseas leads, where a weak dollar and light Chinese buying supported the metal.
But a strong rupee restricted the upside in the dollar-quoted asset. The Indian rupee rose to its highest in more than two weeks as firmer Asian currencies and gains in the domestic share market heightened expectations of more capital inflows into Indian assets.
“A fall close to $880 would further ignite buying interest,” added another dealer with a state-run bank in Mumbai.