Gold traders trickle in as prices ease

Gold traders trickle in as prices ease

Mumbai: India’s gold traders trickled in on Tuesday to stock up for the wedding season as prices eased and an early strength in the rupee aided sentiment, making the dollar-quoted asset cheaper, dealers said.

“Jewellers are buying in small lots of 2-3 kgs, I must have sold about 40-50 kgs since morning, prices are down and even strong rupee is acting in support," said a dealer with a state-run bullion dealing bank.

“We have seen some bit of demand, they are buying at around $1,100 (an ounce)," said another dealer with a private bullion dealing bank.

The most-traded December gold contract was 0.15% lower at Rs16,592 per 10 grams at 2:19pm.

The Indian rupee erased early gains and turned weaker on Tuesday afternoon hit by losses in the domestic share market.

Dealers said some jewellers were stationed on the sidelines seeking further falls to replenish stocks for the ongoing wedding season, which will last till December.

“We are awaiting bigger lots, more jewellers could come in at 1,080 an ounce," said the state-run bank dealer.