Gold nears record high; buyers put off

Gold nears record high; buyers put off

Mumbai: India gold prices neared their record high on Thursday, with traders reluctant to stock the yellow metal even as festivals neared, dealers said.

Gold futures on the continuation chart was 0.31% higher at Rs15,958 at 2:27pm, after hitting a high of 15,968, nearing their previous record of Rs16,040, struck on 20 February.

“Demand is dull and no one is committing to buy with prices nearing the peaks. The overall appetite has been hit," said Pinakin Vyas, chief manager-treasury, IndusInd Bank in Mumbai.

Dealers said traders sought lower prices to stock the yellow metal for festivals, starting later this month.

“The volatility is killing the buying appetite, if prices stabilise below $990 (an ounce) level, we could see demand re-appearing," said a dealer with a state-run bank.

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 percent to 126.7 tonnes from 282.3 tonnes a year earlier.