Gold demand abates as prices cross Rs15,000

Gold demand abates as prices cross Rs15,000

Mumbai: India gold demand abated on Friday after picking up for two continuous session as the yellow metal was quoted above the keenly-watched Rs15,000 mark, dealers said.

“We haven’t struck any deals since morning, traders don’t want to enter at these Rs15,000 levels," said a dealer with a state-run bank in Mumbai.

The most-traded gold October contract was 0.22% higher at Rs15,060 per 10 grams at 1:30pm, helped by strong crude oil, enhancing the yellow metal’s appeal as a hedge against oil-led inflation.

Oil climbed towards $73, after snapping a two-day fall a day ago from 10-month highs, boosted by better-than-expected GDP and jobs data in the United States that signal the economic recovery is on track.

Dealers said traders, who intend to stock the yellow metal for festivals, had taken to the sidelines.

“I have many orders in between $930-940 (an ounce)," said another dealer with a private bank.

“If prices move below $890 (an ounce) internationally and if rupee helps, there may be scramble for gold," said another dealer with a state-run bank.

India is celebrating the ongoing Ganesh festival, the first in this season, which is expected to revive physical offtake of gold.