Gold demand stays weak; falls eyed

Gold demand stays weak; falls eyed

Mumbai: India gold traders stayed away from entering into fresh deals for a third day on Thursday as prices traded above the psychological level of Rs17,000 mark and as they sought lower prices, dealers said.

“Last two days demand was dull... even today I did less quantity," said a dealer with a state-run bank in Mumbai.

International gold, which guides the domestic market, was trading $1,169.35/1,170.35 an ounce as against the previous close of $1,164.45/1,166.45 an ounce.

“There are previously placed orders below $1,150," said another dealer with a private bank.

Gold edged up, following a surge in the previous session, to its highest this year as a knee-jerk reaction to rising concerns about European sovereign debt gave way to hope a resolution may soon be reached.