Mumbai: India’s gold demand ebbed on Tuesday after having picked up in the past few sessions, following a 3% jump in prices this week, dealers said.
“There are no buyers now as gold prices are up,” said a dealer with a private bank in Mumbai, adding “there were buyers yesterday.”
The most-traded gold contract extended previous day’s days gains to trade 0.10% higher at Rs14,430 per 10 grams at 1:39pm.
Gold rose in India, tracking its overseas peers which jumped on renewed economic worries, and on a weak rupee which has rendered the dollar-quoted metal as more expensive.
“Sudden spike in gold prices and rupee has restricted activity in the gold market,” said Pinakin Vyas, chief manager-treasury with IndusInd Bank.
Deamand had picked up in the past few sessions as traders replenished stocks ahead of the Akshaya Tritiya festival on 27April, the second-most auspicious day to buy gold after Dhanteras.
Demand will revive again if either gold prices or rupee corrects, said Vyas, adding “traders are eyeing 13,500 rupees levels,” referring to levels last seen in late January.