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Gold demand lacklustre; prices recover from 2-month low

Source : REUTERS
Last Updated: Mon, Oct 14, 2013 12:08 hrs
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Gold demand in India, the world's biggest buyer of the metal, stayed lacklustre after last week's festivals amid high premiums, even as prices edged higher from their lowest level in two months.

The festival season has started in India and will peak with Dhanteras, an auspicious day for buying gold, in November, while the wedding season will continue till December.

At 1125 GMT, the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 1.84 percent higher at 28,888 rupees per 10 grams, recovering from a low of 28,321 rupees on Friday, a level last seen on August 12.

"There is no demand as of now and premiums are very high," said Suresh Jain, director, Bombay Bullion Association, a trade body.

Premiums to London prices jumped to $30 to $40 an ounce from last week's $5 to $7, the All-India Gems and Jewellery Trade Federation (GJF) said on Friday.

India's gold demand could rise as much as 15 percent this quarter to 300 tonnes as pent-up demand following a good monsoon keeps the country on track for yearly demand estimated at 1,000 tonnes.

Silver for December delivery on the MCX was 1.83 percent higher at 47,750 rupees per kg.

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