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Rediff.com  » Business » Indian gold demand eases further after festival week

Indian gold demand eases further after festival week

November 06, 2013 17:06 IST

Gold coinsGold 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 per cent import duty and made supplies harder to come.

On the Multi Commodity Exchange, gold for December delivery was at Rs 29,965 per 10 grams at 1045 GMT, following strong overseas leads.

Silver for December delivery on the MCX was 1.43 per cent higher at Rs 48,850 per kg.

The following were the prices of gold and silver in rupees as of 1600 local time in the spot market, quoted by HDFC Bank:

 

Wednesday

Tuesday

Gold .999/10 grams

Rs 29,701

Rs 29,318

Silver .999/kg

Rs 49,976

Rs 48,941

Siddesh Mayenkar in Mumbai
Source:
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