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Gold physical buyers desist from orders ahead of Akshaya Tritiya

Source : REUTERS
Last Updated: Wed, May 08, 2013 10:08 hrs
Gold rush<br>

Indian gold futures edged higher, recovering partially from the lowest level in a week, in line with global markets, even as partially stocked physical traders bide their time ahead of a key gold buying festival next week.

India, the world's biggest buyer of the metal, will celebrate Akshaya Tritiya next week, the second-biggest gold buying festival after Dhanteras. Weddings have also started and will continue until July.

"Demand is trickling in but it's not great ... manufacturers and traders are already done with their purchase," said Daman Prakash Rathod, director with Chennai-based wholesaler MNC Bullion.

"Retail sales are down at present as people have reserved their residual money for symbolic purchase on auspicious Akshaya Tritiya day," said Rathod.

The actively traded gold contract for June delivery on the Multi Commodity Exchange (MCX) was 0.25 percent higher at 26,791 rupees per 10 grams, moving higher from 26,594 rupees, the lowest level in nearly a week seen in the last session.

Global gold edged up, supported by demand from China and a tight physical market, but gains were capped by strong equities and a drop in bullion exchange-traded fund holdings to their lowest in four years.

Traders were also watching the rupee for direction. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver contract for July delivery on the MCX was 0.21 percent lower at 44,766 rupees per kilogram.


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