Gold traders stock up for festivals

Gold traders stock up for festivals

Mumbai: India gold traders picked up bargains on Friday to stock for festivals, due next week, as prices stayed near their two-week low, dealers said.

“The (gold) market is in full action, there is activity in all the centres as prices are near $995 (an ounce). I sold around 300 kgs since morning," said Pinakin Vyas, chief manager, treasury, IndusInd Bank in Mumbai.

“There is good amount of buying after yesterday’s price dip. It’s come at a right time" said a dealer with a state-run bullion dealing bank in Mumbai.

The most-traded October contract traded near its two-week low at 15,588 rupees per 10 gram at 2:03pm.

The contract shed 1.5% in the previous session, after witnessing a low of 15,550, a level last seen on 10 September, when a strong dollar overseas spurred selling.

Interational gold was at 995.00/996.20 an ounce as against 993.75/995.75 on Thursday.

India, the world’s largest consumer of the yellow metal, is in the midst of the festival season, with Dussera on Monday and Diwali and Dhanteras next month, which is expected to revive sagging gold sales.

Further decline in prices could revive buying appetite, they added.

“I still have plenty of orders at around $980 (an ounce)," said IndusInd’s Vyas.

The World Gold Council’s January to June figures show India’s gold imports fell 55% to 126.7 tonnes from 282.3 tonnes a year earlier.

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