Mumbai: India’s gold demand remained low on Friday as prices firmed up on the back of foreign markets that held near a three-month high supported by bullish crude oil, dealers said.
“There is not much of buying... the rupee is in favour of gold but not the gold price itself,” said Ketan Shroff, director of Pushpak Bullions Ltd, a large wholesaler in Mumbai.
Overseas gold took cues from crude oil that gained on heightened geo-political tensions in Iran and Nigeria raising concerns over supplies.
Gold generally tracks crude oil as the latter signals inflation while the metal douses it.
A stronger rupee against the dollar eased gold prices in the local market to a small extent as most of the metal is imported into India and paid for in dollars.
The gap between the prices quoted by banks and the local trade had closed with little recycled supplies hitting the market, said Mahendra Bafna, manager at Riddisiddhi Bullions Ltd, another large wholesaler in Mumbai.
A dealer in a bank said buyers were still eyeing falls closer to Rs12,500 per 10 grams that could boost some sales ahead of the next busy season starting in September.