Gold demand retreats; traders seek lower prices

Gold demand retreats; traders seek lower prices

Mumbai: India’s gold demand retreated on Wednesday afternoon after picking up in the previous several sessions as traders sought lower prices to stock for weddings and upcoming festivals, dealers said.

“Today buying is not much, yesterday interest was seen at $1,123-1,124 (an ounce)," said a dealer with a private bank in Mumbai, adding “there was good demand seen even last week."

International gold, which guides the domestic markets, was trading $1,135-1,135.80 an ounce as against the previous close of $1,133.20/1,135.20.

“They are looking for lower levels like $1125 to buy," said another dealer with a state-run bank.

A weaker rupee against the dollar also weighed on sentiment, they added.

The Indian rupee was slightly weaker in mid-day trade, after hitting a fresh 19-month high early in the session, tracking local shares.

Currently, the wedding season is underway in the world’s largest consumer of the yellow metal, with gold-buying festivals like Akshaya Tritiya slated in May.