Gold falls to 13-week low; triggers physical buying

Gold falls to 13-week low; triggers physical buying

Mumbai: Gold extended losses for a fourth session to hit its lowest level in 13 weeks, triggering physical buying in the domestic market ahead of the wedding season slated in February, dealers said.

“We are having good deals from morning, I priced in for 100 kgs at $1,312.50-1,314.80 (an ounce) today," said a dealer with a state-run bullion importing bank in Mumbai.

The most-active February gold contract on the Multi Commodity Exchange (MCX) was trading 0.31% lower at 19,617 per 10 grams on Friday, extending the 1.9 percent fall registered in the previous three sessions.

The contract struck a low of 19,515 earlier, its lowest level since 3 November.

“I am clearing my old stocks and therefore charging lower premiums, otherwise the premiums elsewhere are at $2," said the state-run bank dealer.

The winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.

In India, which accounts for 20% of global demand for jewellery, gold is widely gifted in religious celebrations and weddings.