Gold steady near 1-month high; spot demand subdued

Gold steady near 1-month high; spot demand subdued

Mumbai: Gold steadied at its highest level in a month on Wednesday afternoon, while physical demand remained subdued as banks, the primary dealers of bullion, were shut for a local holiday, dealers said.

The most-active April contract on the Multi Commodity Exchange (MCX) was trading 0.05% higher at 20,510 per 10 grams, almost steady near the one-month high of 20,545, a level last of 20 January.

Traders have been on the sidelines as the prices rose, amid easing supply issues, which were caused due to excessive snowing in refining areas and lower carryover stock.

Winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand. Marriage season has also started and will last through May.

India accounts for 20% of global demand for jewellery, making it the world’s biggest consumer.