MUMBAI (Reuters) - India’s gold market saw little trading in the physical metal on Monday with profit-taking by investors denting local prices, dealers said.
“There is some scrap sale and some sale of old bars that was bought by the market for investment purpose,” said Naresh Devatha of Micro International, a large trader in Bangalore.
Dealers said local prices were discounted over the rates being quoted by primary sellers -- the banks and trading houses that import gold -- owing to low demand and sales by investors.
“There is an indication that gold is lower by 100-115 rupees per 10 grams (over the bank rates),” said Satish Bansal of M.D. Overseas Ltd., a large gold importer based in New Delhi.
Dealers in bullion banks said there was hardly any sales with their clients wishing for drops to around $800 an ounce.
Gold prices were higher on the back of overseas markets where a surge in speculative buying on expectations of a U.S. rate cut pushed gold towards its early November 28-year high of $845.40 an ounce.
India’s demand has been low since the price broke above the psychological 10,000 rupees mark, but dealers hope weddings in the next few months would make traders keep buying at dips.