Goldmania
Indian Gold Buyers Cautious Despite Slight Price Fall
GOLD NOW: bit.ly/pvOEve
NEW DELHI – Demand for gold in India remained subdued Wednesday as jewelry buyers stayed away, despite a slight pullback in prices from record highs, but there was some cautious investment buying in coins and bullion bars.
The price of pure spot gold in Mumbai fell to 25,740 rupees ($571.87) per 10 grams Wednesday after hitting a record high of 25,925 rupees Tuesday, while the October MCX gold futures contract is down 0.4% at 25,630 rupees per 10 grams on a strong Indian rupee to the U.S. dollar and firm equities.
Overseas spot gold was trading at $1,747.05/oz, down from a record $1,779.70/oz Tuesday.
"The demand is slightly slow. People are waiting for the price to stabilize," said Princeson Jose, managing director at Chennai-based Prince Jewellery.
Traders said demand for gold jewelry has almost entirely disappeared and they are not expecting it to improve before the September-November peak festival season, which is considered an auspicious time for gold purchases.
"There was some buying by merchants and investors late-evening Tuesday when prices declined to 25,400 rupees/10 grams from 26,100 rupees/10 grams," said Pawan Chokshi, an Ahmedabad-based bullion dealer. "There is no aggressive buying. That will come only when international prices fall by $100/oz."
Gnanasekar Thiagarajan, director at Commtrendz Research, said there could be some short-term pressure on gold prices as confidence is emerging again in the equities market.
However, traders said the overall sentiment on gold remains bullish and people are betting that international prices could cross $2,000/oz by October-end or November.
"Gold is looking good, even at these levels," said Krishna Kumar Nathani, managing director of Indiabullion.com.
"The Federal Reserve's comment [Tuesday] that low interest rates will remain at least until 2013 is also good for gold. That means there will be liquidity in the markets, which could drive up inflation and gold is the safest hedge against it," he said.
Rajiv Popley, director of Mumbai-based jewelry chain Popley & Sons, said Indian consumers are getting used to high gold prices and they hope jewelry buying will again emerge in the festival season.
GOLD NOW: bit.ly/pvOEve
Indian Gold Buyers Cautious Despite Slight Price Fall
GOLD NOW: bit.ly/pvOEve
NEW DELHI – Demand for gold in India remained subdued Wednesday as jewelry buyers stayed away, despite a slight pullback in prices from record highs, but there was some cautious investment buying in coins and bullion bars.
The price of pure spot gold in Mumbai fell to 25,740 rupees ($571.87) per 10 grams Wednesday after hitting a record high of 25,925 rupees Tuesday, while the October MCX gold futures contract is down 0.4% at 25,630 rupees per 10 grams on a strong Indian rupee to the U.S. dollar and firm equities.
Overseas spot gold was trading at $1,747.05/oz, down from a record $1,779.70/oz Tuesday.
"The demand is slightly slow. People are waiting for the price to stabilize," said Princeson Jose, managing director at Chennai-based Prince Jewellery.
Traders said demand for gold jewelry has almost entirely disappeared and they are not expecting it to improve before the September-November peak festival season, which is considered an auspicious time for gold purchases.
"There was some buying by merchants and investors late-evening Tuesday when prices declined to 25,400 rupees/10 grams from 26,100 rupees/10 grams," said Pawan Chokshi, an Ahmedabad-based bullion dealer. "There is no aggressive buying. That will come only when international prices fall by $100/oz."
Gnanasekar Thiagarajan, director at Commtrendz Research, said there could be some short-term pressure on gold prices as confidence is emerging again in the equities market.
However, traders said the overall sentiment on gold remains bullish and people are betting that international prices could cross $2,000/oz by October-end or November.
"Gold is looking good, even at these levels," said Krishna Kumar Nathani, managing director of Indiabullion.com.
"The Federal Reserve's comment [Tuesday] that low interest rates will remain at least until 2013 is also good for gold. That means there will be liquidity in the markets, which could drive up inflation and gold is the safest hedge against it," he said.
Rajiv Popley, director of Mumbai-based jewelry chain Popley & Sons, said Indian consumers are getting used to high gold prices and they hope jewelry buying will again emerge in the festival season.
GOLD NOW: bit.ly/pvOEve