Mumbai: India’s wholesale gold demand abated on Thursday afternoon as traders eyed a further fall in prices, while a stronger rupee aided sentiment, after the offtake picked up since the start of the week, dealers said.
“It’s (gold demand) all quiet today, I had orders till yesterday, We must have done about 100 kgs at $1,085 (an ounce) late last evening,” said a dealer with a state-run bullion dealing bank in Mumbai.
International spot gold was trading at $1,092.30/1,093.00 an ounce as against the previous close of $1,087.25/1,088.25.
“I have a lot of orders below $1,085,” said another dealer with a private bank.
Gold for February delivery on the Multi Commodity Exchange (MCX) was 0.23 percent lower at Rs16,403 per 10 grams, weighed by a stronger rupee.
The Indian rupee strengthened, backing further away from a more-than-three-week low touched in the previous session, boosted by gains in global stock markets following the Fed’s decision to keep rates near zero.
Dealers said lower prices and volatility have spurred purchases at the start of 2010, after witnessing a lacklustre performance last year.
India imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said on Wednesday.