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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Indian Markets

Indian Markets

Nifty marks record high, tracks higher global shares.  Full Article 

Tracking Asia

Tracking Asia

Asian shares hitch a ride on Wall Street's record  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

RBI Annual Report

RBI Annual Report

RBI reiterates commitment to bring down inflation .  Full Article 

Monsoon Update

Monsoon Update

Monsoon to display lull as floods ease.  Full Article 

Regulatory Troubles

Regulatory Troubles

U.S. regulator alleges Dr Reddy's breached packaging rules  Full Article 

Reuters India Mobile

Reuters India Mobile

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