Gold buying edges up; appetite still strong

Gold buying edges up; appetite still strong

Mumbai: India gold buying edged up on Thursday afternoon as prices steadied near their lowest level in two weeks, but appetite remained strong ahead of key festivals slated for early next month, dealers said.

“A few exporters and domestic traders have covered from the morning, I expect another 100 kgs to get priced in," said a dealer with a state-run bullion importing bank.

Gold on the Multi Commodity Exchange (MCX) was trading 0.08% higher at Rs19,545 per 10 grams at 12:53pm, after hitting a low fo Rs19,514, nearing the level last seen on 8 October.

“I have 150 kgs waiting to be executed at $1,340 (an ounce)," said another dealer with a private bank.

State-run Indian trader MMTC Ltd expects to import more than 200 tonnes of gold in the current fiscal year to March 2011 on good demand seen in the current festival season despite high prices, its chairman said.

Festival season in India is underway, with Dhanteras -- the day jewellers register the highest sales in a year -- will be celebrated on 3 November.