Gold traders continue festival purchases

Gold traders continue festival purchases

Mumbai: India gold traders continued with their purchases on Thursday afternoon as traders stocked up for festivals and weddings slated over the next couple of months, dealers said.

“I covered for more than 150 kgs from morning at $1,320/1,321 (an ounce) as prices are steady and traders think there could be a leg-up in prices," said a dealer with a state-run bullion importing bank in Mumbai.

International gold was steady at $1,324.15 an ounce after regaining some of the lost ground on Wednesday as investors reworked their assessments on the scale of the Federal Reserve’s stimulus plan.

Local gold on the Multi Commodity Exchange (MCX) was trading 0.26% lower at Rs19,390 per 10 grams.

“Most buyers are waiting for levels below $1,322," said another dealer with a private bank in Mumbai.

India, the world’s biggest consumer of the yellow metal, is in the middle of the festival season, with Dhanteras in November, when jewellers register highest sales in the year. Weddings also take place in the festival season.

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.