Gold demand abates after slight pick-up

Gold demand abates after slight pick-up

Mumbai: India’s gold demand turned weak on Wednesday afternoon, as traders sought lower prices, after the offtake picked-up slightly in late previous session, dealers said.

“There are no buyers today. Yesterday we did a few deals when gold was at $1,112 (an ounce)," said a dealer with a state-run bullion dealing bank.

The most-traded February contract on the Multi Commodity Exchange (MCX) was 0.27% higher at Rs17,087 per 10 grams at 2:07pm.

“Buyers are looking at sub $1,100 levels... there was slight buying yesterday in between 1,110-1,115 levels," said another dealer with a state-run bank.

Dealers said December was proving to be positive for gold, with some traders stationed on the sidelines to take advantage of lower prices.

“The first-half of the month was good as some correction triggered buying," said the second state-run bank dealer.

India’s December gold imports are likely to spurt to 15-20 tonnes from 3 tonnes a year earlier, mainly on the back of the wedding season demand and easing prices, the head of the Bombay Bullion Association (BBA) said in an interview on 9 December.

Wedding season will last till December-end.