Mumbai: Gold buyers waited for better bargains on Wednesday despite domestic prices coming off the previous day’s peak in the middle of the wedding season, traders and analysts said.
The most-active gold contract for December delivery on the Multi Commodity Exchange (MCX) was trading 0.27% lower at Rs29,092 per 10 grams, falling from the previous session’s all-time high of Rs29,212.
A weaker rupee kept the downside in prices limited, they added. The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, fell 0.5% on Wednesday and hit a new, near 32-month low.
Physical traders sought bigger falls to stock for weddings season, which will continue till December, with premiums charged on London prices remaining steady at $1.20-1.40 an ounce.
“Prices are too high for average people,” said Sanjeev Garg, director with Delhi-based LMJ International, a commodities trading house.
“The market is dead... we haven’t changed premiums for last 2 weeks as there is no demand,” said a dealer with a private bullion importing bank in Mumbai.
India is the world’s biggest buyer of bullion.