Mumbai: India gold prices extended gains for a second day on Thursday and domestic buyers were unwilling to take positions anticipating falls, dealers said.
“There are advance orders placed by traders below $900,” said a dealer with a state-run bank in Mumbai, “since it had gone below $900 levels on Tuesday, people are waiting for lower levels.”
Dealers said traders were not in a position to enter into deals as banks, the primary sellers of gold, were closed on Tuesday and Wednesday for a public holidays.
The benchmark April gold contract was 0.18% higher at Rs15,143 per 10 grams at 1:51pm, after hitting a high of Rs15,225 earlier.
The contract had touched a low of Rs14,815 on Tuesday as rebounding equity markets reduced the yellow metal’s appeal as a safe haven asset.
The disparity between bank and local gold was also affecting demand, they added.