Gold demand doused as prices edge up

Gold demand doused as prices edge up

Mumbai: India gold traders refrained from fresh deals on Wednesday afternoon as prices edged higher after a slight pick-up in sales late in the previous session, with a stronger rupee aiding sentiment, dealers said.

“Today, the demand is not much as prices have moved higher, we did about 100 kg at about $1,069/1,070 (an ounce) late in the evening," said a dealer with a state-run bullion dealing bank in Mumbai.

International gold was trading $1,075.50/1,076.30 an ounce at 2:07pm, as against the previous close of $1,076.95/1,077.75.

“We have sizeable orders in the range of $1,065-1,070 as jewellers want to stock for upcoming weddings," said another dealer with a private bank.

The Indian rupee moved back towards the day’s highs in afternoon trade as a reversal in the local sharemarket yet again eased nerves about the risk of foreign capital outflows.

A strong rupee makes the dollar-quoted asset cheaper.

India has imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said.

Traders are trying to stock up in anticipation of India’s wedding season, which begins in April, when demand for the yellow metal peaks.