Gold buying retreats, traders await falls

Gold buying retreats, traders await falls

Mumbai: India gold buying retreated on Thursday after a slight pick-up the previous day as traders awaited bigger falls, with a weaker rupee also weighing on sentiment, dealers said.

“There is not much business today as market is very steady and everyone wants a fall," said a dealer with a state-run bullion dealing bank.

International gold, which guides the domestic market, was trading at $1,232.75/1,233.25 an ounce at 2:30 p.m. as against the previous close of $1,235.20/1,239.20 an ounce.

“There were deals yesterday, we booked about 150 kgs in between $1,227/1,229 (an ounce)," said another dealer with a private bank.

Bank dealers said a weaker rupee kept the downside in gold prices restricted.

The Indian rupee eased, moving in a narrow band on a spurt in dollar demand from importers, but the US Federal Reserve’s pledge to keep rates low checked the losses.

The rupee plays a pivotal role in determining the landed cost of the yellow metal, which is quoted in dollars.

India’s gold demand has witnessed persistent weakness since May and the trade expects it to tumble by half in June.

Gold imports into India may fall to less than 15 tonnes from 29.9 tonnes a year earlier as near-record prices and the onset of monsoon dent demand, a trade body official told Reuters on 14.