Mumbai: India gold prices reversed early losses on Thursday supported by a weak rupee locally, with buyers reluctant to enter into fresh deals in the middle of a seasonally slack period, dealers said.
The most-active August contract was 0.09% higher at Rs14,783 per 10 grams at 2:03pm, after hitting a low of Rs14,720 earlier.
The contract had gained 0.8% in the previous session.
“We haven’t seen sales since morning as prices have moved up,” said a dealer with a private bank in Mumbai. “Demand has slowed as we are in a slack period.”
Fewer weddings take place during monsoons, making it a lean season for the Indian gold market. But a series of festivals and auspicious days weddings is expected to boost gold sales from August-end.
Dealers said a price decline could re-kindle buying interest.