RTRS: India gold eases but buyers wait for further falls
India's gold eased from the previous day's highs following overseas markets on Tuesday, but buyers waited for further falls, dealers and traders said.
Demand has turned zero due to volatile prices, said Lokesh Agarwal, chairman of Lucknow-based Brijwasi Traders & Bullions Pvt Ltd, adding prices will have to correct to below 13,000-rupee-level for buying to kick in. "For the month of December, we have hardly managed to sell gold as compared to around 700-800 kgs sold last month," Agarwal added.
"There is no physical demand at such elevated prices," said a dealer with a private bank in Mumbai, adding demand may come in only if prices correct to $830-835 an ounce level.
Overseas gold slipped on Tuesday as speculators booked profits from a rally to an 11-week high the previous day, but sentiment was still underpinned by conflict in the Middle East and a weaker U.S. dollar. See [ID:nSP421605]
The benchmark February gold contract on the Multi Commodity Exchange MAUG9 was lower by 159 rupees at 13,476 rupees per 10 grams at 2:44 p.m..
The contract closed the previous session 1.8 percent higher at 13,635 rupees per 10 grams after an intra-day high of 13,790 rupees
