Gold traders stay away as prices near peak

Gold traders stay away as prices near peak

Mumbai: Gold traders in India, the world’s biggest buyer of bullion, stayed away from fresh physical buying as futures prices extended gains to near last week’s peak, following the trend in global markets, dealers said.

“Demand is zero, there are no deals in the market," said Haresh Acharya, head of the bullion desk at Ahmedabad-based wholesaler Parker Bullion, adding the Rs27,500 level could draw more buying.

The most-active gold futures contract for December delivery on the Multi Commodity Exchange (MCX) was 0.12% higher at Rs28,920 per 10 grams, after touching a high of Rs29,048 -- not far from last week’s contract high of Rs29,123.

Global gold edged up, extending gains from the previous session, as change in the political leadership in Italy and Greece rekindled hopes for a resolution to the euro zone’s debt crisis, fueling risk appetite in markets.

Premiums charged by Indian banks for gold bars over London prices were steady at $1-1.5 an ounce, making the end price of the yellow metal higher.