Gold buying re-emerges on steady prices

Gold buying re-emerges on steady prices

Mumbai: India gold buyers re-emerged on Friday to stock up for festivals as prices steadied after nearing their record high in the previous session, dealers said.

“There is demand as market is sensing that prices may move higher, so flat markets are bringing them back," said a dealer with a private bank in Mumbai.

The most-traded October gold contract on the Multi Commodity Exchange was 0.04% lower at Rs15,845 per 10 grams at 2:38pm. It witnessed a high of Rs15,971 on Thursday, approaching the record of Rs16,040, struck on 20 February 20.

India celebrates Dussera festival later this month and Diwali and Dhanteras in October, which is expected to revive sagging gold sales.

The World Gold Council’s January to June figures show India’s gold imports fell 55% to 126.7 tonnes from 282.3 tonnes a year earlier.

Dealers said scrap inflow has receded as sellers were seeking higher prices.

“The flow is not as huge as what it was 2-3 months back. Sellers want prices to touch about 17,000 (rupees)" said another dealer from a Mumbai-based bullion selling bank.

Indian households are estimated to have 20,000 tonnes of gold, mainly in the form of jewellery, which they resort to selling in case of a price surge.