Gold at record high spurs scrap sales

Gold at record high spurs scrap sales

Mumbai: The gold powering to record high spurred more scrap sales on Wednesday as consumers cashed in on the price jump, but physical offtake remained weak, dealers said.

“Currently I have around 15-20 people lined outside my shop, and we expect around 40-50 more by this evening," Jitendra Kantilal, partner, Jugraj Kantilal & Co., a Zaveri Bazzar-based scrap dealer said.

Kantilal offered to buy scrap gold at Rs16,650 per 10 grams.

Gold futures on the Multi Commodity Exchange (MCX) was 0.02% higher at Rs16,622 per 10 grams at 2:29 pm, after hitting a record of Rs16,664 earlier tracing overseas markets.

International gold, which guides the domestic markets, ran to a record high above $1,090 per ounce, latching on to a weaker dollar with continued support from the IMF’s sale of gold to the Reserve Bank of India (RBI).

However, dealers said, wholesale buyers turned their back on the market, unwilling to get stuck with high-priced stocks ahead of the wedding session.

“I haven’t booked any deals since yesterday’s late night surge. I have advanced orders in the range of below $1,050 (an ounce)," said a dealer with a bullion dealing state-run bank.

India’s wedding season would last till December-end.

Imports by traders between January and 22 October were 157.9 tonnes, down from 383 tonnes bought in the same period a year ago, data from the Bombay Bullion Association showed.