Gold demand edges up; lacks momentum

Gold demand edges up; lacks momentum

Mumbai: Gold demand edged up as traders hunted bargains with prices easing from their record highs, though buying lacked the momentum that was witnessed during the key gold-buying festivals, dealers said.

“Deals aren’t happening on expected lines. Sales are far lower than what they were in early November. We booked for only 120 kgs from morning at $1,392 (an ounce)," said a dealer with a state-run bullion importing bank.

Gold contract on the Multi Commodity Exchange (MCX) was trading 0.38% lower at 20,600 per 10 grams at 1:34 pm, down about 1.5% from the record high of 20,924 struck in the previous session.

Wedding season that follows Dhanteras and Diwali festivals is underway in India and will end in December.

During religious celebrations and weddings, gold is a key gift item for Indians, and the country accounts for 20 percent of global demand for jewellery.

In July-September, India imported 214 tonne of gold, up 21.6% on year, the World Gold Council said.