Gold falls from peak, fails to attract physical buyers

Gold falls from peak, fails to attract physical buyers

Mumbai: Gold buyers waited for better bargains on Wednesday despite domestic prices coming off the previous day’s peak in the middle of the wedding season, traders and analysts said.

A weaker rupee kept the downside in prices limited, they added. The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, fell 0.5% on Wednesday and hit a new, near 32-month low.

Physical traders sought bigger falls to stock for weddings season, which will continue till December, with premiums charged on London prices remaining steady at $1.20-1.40 an ounce.

“Prices are too high for average people," said Sanjeev Garg, director with Delhi-based LMJ International, a commodities trading house.

“The market is dead... we haven’t changed premiums for last 2 weeks as there is no demand," said a dealer with a private bullion importing bank in Mumbai.

India is the world’s biggest buyer of bullion.