Gold traders stay away, seek price fall

Gold traders stay away, seek price fall

Mumbai: India’s gold traders stayed away from taking fresh position on Friday, seeking a further fall in prices, in the middle of the festival season, dealers said.

“There are enquiries, but nothing is materialising," said a dealer with a private bank in Mumbai.

The most-traded December gold contract on the Multi Commodity Exchange was 0.01 percent lower at Rs15,837 per 10 grams at 2:38pm.

International spot gold prices were at $1.044.90/1,046.10 (an ounce) as against 1,054.00/1,056.00 on Thursday.

“There are orders at $1,020 (an ounce)," said another dealer with a state-run bullion dealing bank in Mumbai.

India, which accounts for more than 20% of the global demand for gold jewellery, is in the midst of a festival season which peaks with Diwali on 17 October, when weddings usually take place, pushing up the demand for jewellery.

India’s gold imports in September provisionally fell 30%, the smallest year-on-year decline in five months, as steady prices and the festival season attracted more buyers.