Mumbai: India’s gold traders stayed away from the market as the yellow metal powered to its fresh highs, with the flow of scrap easing on expectations of a further rise, dealers and traders said.
“Nothing... I haven’t done a single order since morning,” said a dealer with a state-run bullion dealing bank in Mumbai, when asked about the physical off take.
Dealers said traders sought lower prices to replenish stocks to meet wedding demand, which will last till December.
“I have some orders at $1,120-1,125 an ounce and further buying could happen at $1,080 level,” said another dealer with a private bank.
The most-traded December contract continued its record-breaking spree on Monday as a weaker dollar spurred buying in the alternative asset.
The contract struck a fresh high of Rs16,919 per 10 grams, before trading at Rs16,894, up 0.56% at 2:35pm.
The flow of scrap also eased as sellers sought higher prices, traders said.
“I have around 10 people lined outside my shop, most of them are still waiting for higher prices. They want prices above Rs17,200 now,” said Jitendra Kantilal, partner, Jugraj Kantilal & Co, a Zaveri Bazaar-based scrap dealer, that offered to buy scrap at Rs17,100 per 10 grams.
Kantilal estimates about 200-250 kg of scrap entered Mumbai’s Zaveri Bazaar last week.