Mumbai: Gold recovered a tad on Thursday afternoon, moving away from from its lowest level in 10 weeks, but physical buying retrated as traders were unwilling to place fresh deals hoping for larger falls ahead, dealers said.
The most-active gold contract for February delivery traded 0.23% higher at Rs 19,945 per 10 grams at 1:21pm, recovering from previous session’s low of Rs 19,741, a level last seen on 4 November.
“There is not much business today as prices have gone up,” said a dealer with a state-run bullion importing bank in Mumbai.
Gold traders have been stocking up on the yellow metal taking advantage of the two-month trough since November, anticipating an improvement in demand during the wedding season next month.
“There are advanced orders at $1,320 (an ounce),” said the dealer.
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.