Gold demand abates as prices jump

Gold demand abates as prices jump

Mumbai: India gold demand abated on Thursday on an overnight jump in prices, after picking up for a few previous sessions, dealers said.

“The sudden jump in prices is alarming traders. They don’t want to get stuck with stocks priced above $1,000 (an ounce)," said a dealer with a private bank in Mumbai.

International spot gold traded at $1,005.40/1,006.40 as against $1,006.70/1,008.70 at 2:31pm, after gaining 1.6% in the previous session, when a weak dollar overseas supported the yellow metal.

Dealers said traders were still hunting for bargains to replenish stocks for the upcoming festivals and weddings.

“There are orders at $995 (an ounce). They all want to buy for festivals," said another dealer with a state-run bullion dealing bank.

India, the world’s largest consumer, is in the midst of the festival and wedding season, with Diwali and Dhanteras due next month, which is expected to revive sagging gold sales.

India’s gold imports in September were provisionally around 35-40 tonnes, up from August but down by more than a quarter from 54 tonnes a year ago, the head of the Bombay Bullion Association (BBA) said.