Gold demand eases further after festival week
Gold buying in India, the world's biggest buyer of the metal, tapered off further after the festival week, even as domestic users started getting small import lots, weighing on premiums.
India celebrated Dhanteras, the biggest gold buying festival, followed by Diwali, when scarcity of the yellow metal and high prices pushed consumers to buy silver and diamond jewellery.
Wedding season is expected to start in the next week.
"Demand is tapering off as ... there won't be buying for another week," said Bachhraj Bamalwa, director with the All India Gems and Jewellery Trade Federation, adding premiums stayed steady at about $70 an ounce.
India, struggling with a high trade deficit and weak currency, has been trying to curb demand for gold, the second-biggest import item after oil.
It has made gold expensive for consumers by setting a record 10 percent import duty and made supplies harder to come.
On the Multi Commodity Exchange (MCX), gold for December delivery was at Rs 29,965 per 10 grams at 4:05 p.m., following strong overseas leads.
Silver for December delivery on the MCX was 1.43 percent higher at Rs 48,850 per kg.
Copyright: Thomson Reuters 2013