Tue, Mar 3 02:43 PM
A three percent drop in India gold prices on Tuesday failed to attract buyers as they awaited a drop below the psychological 15,000-rupees-mark, with the flow of scrap expected to ease, traders and dealers said.
"There is no much demand even as prices have fallen," said Pinakin Vyaas, chief manager-treasury with IndusInd Bank in Mumbai.
"Orders are there... but they are in the range of $900-908," added Vyaas, "signifying that traders want further correction in prices."
"Buyers are a bit cautious," said a dealer with a state-run bank, "they are waiting for sub-$900 levels."
The benchmark April contract was 2.95 percent lower at 15,340 rupees per 10 grams at 2:17 p.m., after falling to a low of 15,305 rupees earlier.
The contract has fallen about 4 percent from its new all-time high of 16,040 rupees struck on Feb. 20 as investors resorted to profit-taking.
"There are no takers for gold," said Daman Prakash Rathod, director with Chennai-based MNC Bullion, adding "nothing is happening at retail or the wholesale level."
"Discounts have widened between bank and local gold by 4.5 percent," Rathod added.
"Wholesalers kept on calling for selling gold when it was at 15,800 yesterday," Rathod said.
SCRAP FLOW MAY EASE
Traders and dealers said the inflow of scrap may ease as prices have fallen considerably from its record highs.
"The flow of scrap should be coming down," said IndusInd Bank's Vyaas.
The recent influx of scrap gold in the market had restricted demand for new bars, bruising imports of the world's largest consumer.
India has not imported any gold in February as high prices dampened demand, according to Suresh Hundia, president of the Bombay Bullion Association.
A three percent drop in India gold prices on Tuesday failed to attract buyers as they awaited a drop below the psychological 15,000-rupees-mark, with the flow of scrap expected to ease, traders and dealers said.
"There is no much demand even as prices have fallen," said Pinakin Vyaas, chief manager-treasury with IndusInd Bank in Mumbai.
"Orders are there... but they are in the range of $900-908," added Vyaas, "signifying that traders want further correction in prices."
"Buyers are a bit cautious," said a dealer with a state-run bank, "they are waiting for sub-$900 levels."
The benchmark April contract was 2.95 percent lower at 15,340 rupees per 10 grams at 2:17 p.m., after falling to a low of 15,305 rupees earlier.
The contract has fallen about 4 percent from its new all-time high of 16,040 rupees struck on Feb. 20 as investors resorted to profit-taking.
"There are no takers for gold," said Daman Prakash Rathod, director with Chennai-based MNC Bullion, adding "nothing is happening at retail or the wholesale level."
"Discounts have widened between bank and local gold by 4.5 percent," Rathod added.
"Wholesalers kept on calling for selling gold when it was at 15,800 yesterday," Rathod said.
SCRAP FLOW MAY EASE
Traders and dealers said the inflow of scrap may ease as prices have fallen considerably from its record highs.
"The flow of scrap should be coming down," said IndusInd Bank's Vyaas.
The recent influx of scrap gold in the market had restricted demand for new bars, bruising imports of the world's largest consumer.
India has not imported any gold in February as high prices dampened demand, according to Suresh Hundia, president of the Bombay Bullion Association.
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