Gold demand weak as prices near 7-month high

Gold demand weak as prices near 7-month high

Mumbai: Gold traders dettered from making fresh purchases on Wednesday as prices hit their highest level in seven months, nearing the keenly-watched Rs16,000 mark, dealers said.

“There are no buyers, no one wants to get stuck with high-priced stocks," said Haresh Acharya, head of bullion desk, Ahmedabad-based wholesaler, Parker Agrochem.

The most-traded October contract was held within a striking distance of Rs16,000 after a weak dollar overseas spurred buying in alternative assets.

The contract traded 0.37% higher at Rs15,935 per 10 gram at 2:29pm, after hitting a high of Rs15,988, a level last seen on 21 Feburary.

Traders were stationed on the sidelines seeking lower prices to stock up for festivals starting later in the month.

“I have plenty of advanced orders at $950 (an ounce)," said a dealer with a state-run bank.

India celebrates Dussera festival later this month and Diwali and Dhanteras in October, which is expected to revive sagging gold sales.

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.