Gold traders continue to stock for festivals

Gold traders continue to stock for festivals

Mumbai: India gold traders continued to stock up for upcoming festivals as prices extended losses for a fourth day to its lowest level in two weeks, dealers said on Friday.

“Heavy deals are there at these rates, because there is fear and confusion that rates may go up again," said a dealer with a state-run, bullion-importing bank in Mumbai.

Gold was trading 0.20% lower at Rs19,290 per 10 grams at 1:29 pm, after hitting a low of Rs19,260, the level last seen on 5 October.

The contract had shed 2.8% in previous three sessions.

International gold was trading at $1,318.20 an ounce.

“I have many advanced orders at $1,319 (an ounce) or below," said another dealer with a bullion dealing private bank.

State-run Indian trader MMTC Ltd expects to import more than 200 tonnes of gold in the current fiscal year to March 2011 on good demand seen in the current festival season despite high prices, its chairman said.

Festival season in India is underway and Dhanteras -- the day jewellers register the highest sales in a year -- will be celebrated on 3 November.