Gold demand tepid, traders at bay for 3rd day

Gold demand tepid, traders at bay for 3rd day

Mumbai: India gold demand remained slack for a third session on Friday as prices traded near their four-month high, dealers said.

“Demand is not much as prices are very high, it was slack yesterday as well. People are waiting for $1,160 (an ounce)," said a dealer with a state-run bank in Mumbai.

International gold, which guides the domestic market, was trading $1,171.85/1,172.85 an ounce against its previous close of $1,166.10/1,168.10 an ounce, after hitting an intra-day high of $1,175.4, a level last seen in early December.

Gold rose in Europe as dollar weakness and a recovery in the price of other commodities added to safe-haven buying linked to concern over the euro zone’s fiscal health.

However a firm rupee, which makes the dollar-quoted asset cheaper, helped sentiment, dealers said.

The Indian rupee strengthened as early gains in domestic shares and firm regional peers cheered sentiment, but a further upside was capped by month-end dollar demand from refiners and importers.