Mumbai: India gold staged a partial recovery, moving away from their lowest level in over two months, on Monday afternoon in step with overseas markets, but traders shied away from booking fresh deals awaiting falls ahead.
“Last week sales were good, I priced in for 800 kgs, but this week sales are dull so far,” said a dealer with a state-run bullion dealing bank in Mumbai.
The most-active gold for February delivery was trading 0.19% higher at Rs20,107 per 10 grams at 1:23 p.m., after hitting a high of Rs20,139.
The contract had struck its lowest level since November of Rs19,972 on Friday.
International spot gold prices firmed, regaining some lost ground after falling for two consecutive days, while holdings in the SPDR Gold Trust rose for the first time in two weeks as some investors enter the market eyeing further price gains.
Gold traders have been stocking the yellow metal taking advantage of the two-month trough ahead of the wedding season due next month.
“Sales are lower compared to last week. People are expecting further correction in prices to $1,325 (an ounce),” said Pinakin Vyas, assistant vice-president with IndusInd Bank.
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.
In India, which accounts for 20% of global demand for jewellery, gold is widely gifted in religious celebrations and weddings.
Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15 p.m.