RTRS: India gold extends losses, buyers still at bay
India's gold futures extended losses for a third day in a row on Monday on global leads, but in the local market, buyers awaited further price falls, traders and dealers said. "Gold demand is very low as prices rose recently," said Sanjeev Garg, director with Delhi-based LMJ International, a bullion trader.
The local market quoted gold 200-300 rupees lower than the bank price, Garg added, implying lack of demand.
Foreign gold, which guides the local market, edged slightly lower on Monday as concerns over physcial demand weighed, while U.S. crude oil slipped to under $40 a barrel in a thin market. See [ID:nLC167346]
The benchmark gold February contract MAUG9 traded 78 rupees lower at 13,250 rupees at 2:52 p.m., after falling 0.8 percent for the previous two sessions. High gold prices have detterred buyers from investing in the yellow metal, traders said. India's gold imports fell 47 percent in 2008 to 402 tonnes as a slowing economy along with high prices dented demand. Demand in 2008 was skewed towards August to November period as traders took advantage of relatively lower prices, market participants said.
Demand may emerge only if prices fall below $800 (an ounce) internationally and 12,200 rupees (per 10 grams) in the domestic market, said Suresh Hundia, the president of the Bombay Bullion Association.
