Festival gold buying lacklustre

Gold buying in India, the world's largest bullion consumer, was lacklustre as a weak rupee marked up prices and deterred buying interest ahead of the festival season.

Gold premiums in Singapore and Hong Kong rose from a week earlier, as lower gold prices discouraged scrap selling while buyers stood on the sidelines as they waited for a clear direction.

"Festival demand is there but not as much as last year," said Pinakin Vyas, assistant vice-president of IndusInd Bank, a gold importing bank in Mumbai.

"Anyone who wants to buy gold with a fixed budget of say 100,000 rupees will do so irrespective of what quantity they get."

Text & Images: Reuters