India gold demand low, buyers watch prices harden

MUMBAI Mon Sep 10, 2007 2:48pm IST

A woman looks at a gold ornament at Vivaha '06'', a travelling wedding exhibition, in Kolkata August 7, 2006. REUTERS/Jayanta Shaw/Files

A woman looks at a gold ornament at Vivaha '06'', a travelling wedding exhibition, in Kolkata August 7, 2006.

Credit: Reuters/Jayanta Shaw/Files

Related Topics

MUMBAI (Reuters) - India's demand for gold was low on Monday with prices hardening in the midst of the busy season, and buyers shifting gears to restrict purchases to immediate needs, dealers said.

"People were certainly not expecting such a sharp rise in price," said Mayank Khemka, managing director of Khemka International Pvt Ltd in New Delhi.

"At these prices they probably won't stock for the future."

International gold prices were firm after touching $707.10 an ounce on Friday, its highest since mid-May 2006, on fresh investments in the metal.

The surge was not good news for India, in the midst of its festival season, when consumers buy gold for religious sentiments.

Prices above 9,000 rupees would curb the appetite of consumers, dealers said.

Dealers in banks also echoed the sentiment, saying buyers are waiting and watching the market and would be comfortable buying when prices stabilise.

"They would be looking for prices around 9,200 rupees (per 10 grams)," said one dealer in a private bank.

FILED UNDER:

REUTERS SHOWCASE

Oil Prices Fall

Oil Prices Fall

Brent near four-year low after OPEC decides against output cut  Full Article 

Banking Sector

Banking Sector

India says considering plan to reduce stake to 52 pct in state banks   Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

SAARC Summit

SAARC Summit

Summit salvaged after handshake by leaders of India, Pakistan  Full Article 

Social Media

Social Media

Twitter to start tracking users' mobile apps  Full Article 

Forever21 in India

Forever21 in India

Forever21 sets sights on Indian cities, but please hold the hot pants  Full Article 

Japan Economy

Japan Economy

Japan inflation slows in October, output and spending show signs of recovery  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage