India's gold demand fades as prices harden

MUMBAI Wed Dec 5, 2007 1:51pm IST

A salesman arranges gold necklaces at a jewellery shop in New Delhi October 10, 2005. REUTERS/Kamal Kishore/Files

A salesman arranges gold necklaces at a jewellery shop in New Delhi October 10, 2005.

Credit: Reuters/Kamal Kishore/Files

Related Topics

MUMBAI (Reuters) - India's low-key gold demand faded on Wednesday with prices strengthening above the psychological 10,000 rupees per 10 grams mark and traders moving to the sidelines awaiting dips, dealers said.

"Demand for gold is poor..." said Satish Bansal of M.D. Overseas Ltd, a large precious metals importer in New Delhi.

The demand seen for gold earlier this week below the $800 an ounce level too "was not that great," Bansal said.

A dealer in a private bank in Mumbai said there were few advance orders in the $790-795 an ounce range.

Overseas gold, that guides local prices firmed up after scaling $800 an ounce the previous day amid expectations of a rate cut in the U.S. next week.

But year-end winding down kept gold from rising much, making physical gold traders expect prices to fall.

A wholesaler in Ahmedabad, Dipen Mandalia of LKS Bullion (Import & Export) Pvt Ltd, said the local market was discounted by around 50 rupees per 10 grams over what the banks were quoting.

Scrap jewellery sales and bars have been discounting the local market as prices above 10,000 rupees are seen as good for taking profits.

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

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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