MUMBAI: Gold hovered near the psychological 16,000-rupees-mark, attracting more scrap sales on Tuesday as consumers chose to cash in on the rally
in the yellow metal, while imports continued to slacken.
"There are sellers exchanging for marriage purpose," said Daman Prakash, director with Chennai-based wholesaler, MNC Bullion, adding "people are seen exchanging their old gold for new designs."
"Around 40 people have lined up outside my shop to sell," said Jitendra Kantilal Jain, partner at Mumbai's Jugraj Kantilal & Co., which buys scrap gold.
Kantilal said he had already collected around 100 kg of gold in scrap last week.
The benchmark April gold contract was 0.37 percent lower at 15,829 rupees per 10 grams at 1:40 p.m. on profit-taking, after hitting a record high of 16,040 last week.
But a weaker rupee limited the downside. The rupee impacts gold prices as most of the metal is imported in India and paid for in US currency.
However analysts are still bullish in the short-term on a contracting US economy and expectations of a weak rupee.
"Consumers, who are interested in selling, may wait as prices are expected to harden further," Prakash added.
