Gold traders continue to stock for festival demand

Gold traders continue to stock for festival demand

Mumbai: India gold traders continued to stock-up on Tuesday to meet festival and wedding demand as prices stayed near their two-week low, dealers said.

“Sales have been up by one-and-a-half times compared to last month due to festivals. There are good orders below $990 (an ounce)," said a dealer with state-run bullion dealing bank in Mumbai.

Gold futures on the continuation charts was 0.09% lower at Rs15,533 rupees at 2:34 pm, after hitting an intra-day low of Rs15,497, a level last seen on 10 September.

International spot gold traded at $992.80/993.60 an ounce as against 989.95/991.95 on Monday.

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. Dealers said the underlying demand is strong as some traders were stationed on the sidelines, seeking lower prices.

“Buying may extend into next month if prices stay at current levels and rupee/dollar stays at 48," said another dealer with a private bank. “I have big orders in the range of $960-980."

The World Gold Council’s January to June figures show India’s gold imports fell 55% to 126.7 tonnes from 282.3 tonnes a year earlier.