Spot gold down on sluggish demand

Spot gold down on sluggish demand

Mumbai: India’s spot gold prices fell for a second consecutive session on Wednesday as buyers stayed away expecting prices to fall further, dealers said.

“Most buyers expect prices to come down further...they will be interested when prices stay below Rs16,500 levels (per 10 gm)," said a dealer with a private bank based in Mumbai.

Dealers, however, said the Hindu wedding season, which will last till December-end, has already helped boost demand with most buying happening earlier in the month.

December has been good so far in terms of demand, said a dealer with another private bank.

India expects a jump in December gold imports to meet the demand.

India’s December gold imports are likely to spurt to 15-20 tonnes from 3 tonnes a year earlier, mainly on the back of the wedding season demand and easing prices, the head of the Bombay Bullion Association (BBA) said in an interview on 9 December.

International gold prices edged higher in Europe on Wednesday, recovering some of this week’s heavy losses, as investors took advantage of the price drop to buy into the market.