Mumbai: India’s gold demand stayed weak on Wednesday as prices gained for the second continuous session nearing the keenly-watched Rs15,000 mark, dealers said.
“There are no buyers as Rs15,000 is a psychological level and they are waiting for prices to come down,” said Pinakin Vyas, chief manager-treasury with IndusInd Bank in Mumbai.
The most active August contract was 0.05% higher at Rs14,864 at 2:12pm, after gaining 0.3% in the previous session.
Some buyers were on the sidelines hoping for falls ahead, dealers added. “Market may get activated if prices fall to Rs14,200,” said another dealer with a state-run bank in Mumbai.
Traders and dealers said scrap sales have slowed as sellers awaited higher prices.
“Now they want to sell gold for Rs15,500, so collections have come down,” said Jitendra Kantilal Jain, partner at Mumbai’s Jugraj Kantilal & Co, which buys scrap gold to refine to be repackaged as bars.
“Since people have seen 16,000 levels, current prices seem to be very less for them,” said Kapil Chokshi, partner with Chokshi Arvind Jewellers, a scrap dealer in Mumbai’s Zaveri Bazzar.
India witnessed huge scrap sales in February when prices struck never-seen-before levels of more than Rs16,000, halting imports of fresh bars.