Wholesale gold buying picks-up as prices fall

Wholesale gold buying picks-up as prices fall

Mumbai: India wholesale gold demand picked-up slightly on Thursday afternoon as prices fell to $1,100 an ounce, but a weaker rupee weighed on sentiment, dealers said.

“We did a few deals at $1,100-1,103 (an ounce), they were sizeable compared to the previous day," said a dealer with a state-run bullion dealing bank in Mumbai.

International spot gold, which guides the domestic markets, was at $1,101.45/1,102.25 an ounce as against the previous close of 1,106.00/1,106.80.

Gold prices fell after the US dollar firmed on upbeat economic data and commodity-linked currencies slipped on news the IMF planned to sell more gold in the open market.

“Advanced orders are there below $1,091 levels," said another dealer with a state-run bank.

However, a weak rupee, which made the dollar-quoted asset expensive, weighed on sentiment, they added.

The Indian rupee weakened, in line with domestic stocks and weighed down by a strong dollar overseas, and was stuck in a narrow range mirroring local shares.

India’s gold demand for the fourth quarter to December rose 13% to 180.7 tonnes on year as weddings and festive demand peaked, helping India retain its position as the world’s largest consumer.