Gold buying remains slack; price declines eyed

Gold buying remains slack; price declines eyed

Mumbai: India gold buying remained slack for a second day in a row on Thursday afternoon as traders waited for price dips to stock up for the wedding season, and a weaker rupee also weighed on sentiment, dealers said.

“Demand is not good, it is lacklustre like yesterday, traders may be holding on their positions as they anticipate a fall below $1,100 an ounce levels," said a dealer with a Mumbai-based state-run bank, which deals in bullion.

International gold, which guides the domestic markets, was trading $1,121.10/1,121.90 an ounce as against the previous close of $1,124.05/1,126.05 an ounce.

Local gold prices traded steady, tracking the international market and the weak currency, which makes the dollar-quoted asset expensive.

“The last time we saw good demand was on late Friday and early Monday in between $1,100-1,110," said another dealer with a private bullion dealing bank.

Overseas gold prices slipped on Thursday as the US dollar strengthened against other currencies, while there were concerns that a failure to sustain recent highs could prompt some investors to shift their money to stocks or bonds.

The Indian rupee extended its fall in late morning trade tracking losses in the domestic sharemarket while overnight gains in the dollar versus majors continued to weigh.

India’s wedding season starts in April.