India Gold Gains Further; Buyers Stay Away

Source:

"India gold prices extended gains for a second day on Thursday and domestic buyers were unwilling to take positions anticipating falls."

India gold prices extended gains for a second day on Thursday and domestic buyers were unwilling to take positions anticipating falls, dealers said.

"There are advance orders placed by traders below $900," said a dealer with a state-run bank in Mumbai, "since it had gone below $900 levels on Tuesday, people are waiting for lower levels."

International spot gold had struck a low of $890.3 on Tuesday.

Dealers said traders were not in a position to enter into deals as banks, the primary sellers of gold, were closed on Tuesday and Wednesday for a public holiday.

The benchmark April gold contract MAUJ9 was 0.18% higher at 15,143 rupees per 10 grams at 1:51 p.m., after hitting a high of 15,225 rupees earlier.

The contract had touched a low of 14,815 on Tuesday as rebounding equity markets reduced the yellow metal's appeal as a safe haven asset.

The disparity between bank and local gold was also affecting demand, they added.

"Today the disparity is at about 150200 rupees," said Pinakin Vyaas, chief manager-treasury with IndusInd Bank, "Lower purchasing power due to slowing economy is also affecting gold demand.

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