Mumbai: Gold futures nudged higher on Monday afternoon in step with overseas markets, and demand in local spot market improved as jewellers raised purchases, dealers said.
At 2:42pm, the most-traded gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.14% higher at Rs 21,725 per 10 grams. The contract has fallen 4.3% since the beginning of June.
“Jewellers were interested in buying below $1,500 an ounce. If prices remain steady at current level for next few days, jewellers may start restocking,” said a dealer at Mumbai-based private bank dealing in bullion.
Stocks with jewellers were low as they sold significant amount of jewellery in the ongoing wedding season.
International spot gold regained some lost territory from the previous session on Monday supported by a weaker dollar, but easing concern about Greece’s debt crisis has diminished gold’s appeal as a safe haven in the short term.
“Buying was good. Many people were waiting for prices to fall below Rs 22,000,” said a dealer with a state-run bullion importing bank.
Farmers, the traditional buyers, usually divert their savings on farm equipment and pesticides for summer-sown crops from gold and silver in monsoon period.