Mumbai: Indian gold buyers trickled in at lower levels on Tuesday as traders geared up to meet festive demand, dealers said.
“Certainly there is buying appetite and traders are entering into deals at lower levels,” said a dealer with a private bank in Mumbai. “We have festivals coming up, and we have advanced orders piled up at lower levels.”
India’s festival season starts with Rakshabandhan on Wednesday, gold-buying begins to pick up.
The most-traded gold October contract was 0.04% lower at Rs14,763 per 10 grams at 2:21pm, weighed by a strong rupee, making the dollar-quoted asset cheaper.
The Indian rupee rose for a fourth consecutive session as weakness in the US unit versus other majors underpinned market sentiment, but choppy trade in domestic shares limited the local unit’s gains.
“If rupee helps and gold breaches the $950 (an ounce) mark, we might see some good demand,” said another dealer with a state-run bank.