Retail gold buying continues on festival day

Retail gold buying continues on festival day

Mumbai: India’s retail gold buying continued on Tuesday afternoon as prices stayed in the vicinity of their recent lows, prompting consumers to buy for a local festival, traders said.

“Yesterday we saw good showroom sales especially on the coins front, and there were some buyers in the morning as well, and expected to increase by evening, when the auspicious time starts," said Ghanshyam Nichani, properietor of Mumbai-based Dhanraj Jewellers.

International spot gold, which guides the domestic market, was trading at $1,112.15/1,113.15 an ounce at 2:09pm, as against the previous close of $1,108.10/1,110.10.

Gold had struck a two-week low of $1,098.25 an ounce on Friday, but has since inched higher as concerns about European sovereign debt persisted, and trading was range-bound ahead of an interest rate verdict in the United States.

“Sales are good, but because of the hike in prices they prefer to buy light-weight casual wears or coins than heavy bridal sets," said Narinder singh, partner of Neelkanth Jewellers, a retalier catering mostly to south Indian markets.

India, the world’s largest consumer of gold, celebrates Gudi Padwa in Maharastra and Ugadi in Karnataka, which marks the onset of a new year and considered auspicious for gold buying.

Wholesale demand was slack as banks, the primary dealers of bullion, were shut for the festival holiday in Mumbai.