Mumbai: Gold traded steady on Wednesday afternoon in line with the overseas market, but traders were unwilling to book deals awaiting greater falls ahead, dealers said.
The most-active gold contract for April delivery on the Multi Commodity Exchange (MCX) was trading 0.16% lower at Rs 20,097 per 10 grams.
“Not many deals have happened, as the market is range-bound from morning,” said a dealer with a state-run bullion importing bank.
According to him, the comfortable level for deals to happen is $1,320 an ounce.
Gold imports in India rose 18% in January to 40 tonnes provisionally, and next month’s wedding season could further boost demand, head of a trade body said.
India accounts for 20% of the global demand for jewellery, and the next marriage season in the country will kickoff later in February.
The winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.