ET:Gold falls 8 per cent from peak, spot buying returning
MUMBAI: Gold shed about 8 percent from its Tuesday's record high, due to continued profit-taking, triggering a slight pick-up in bargains by traders ahead of the festival and wedding season, dealers said on Thursday.
At 2:11 p.m., the most-traded gold for October delivery on the Multi Commodity Exchange (MCX) was trading 1.17 percent lower at Rs 25,985 per 10 grams. The contract had shed more than 7 per cent in the previous two sessions from its Tuesday's peak of Rs 28,284.
The price decline triggered slight physical buying from traders, who were on the sidelines for better bargains. "Buying is there at every dip, physical buying could re-activate at further correction. People are keeping a watch," said Pinakin Vyas, assistant vice-president with IndusInd Bank.
India's wedding and festival season demand will gain pace and peak in October before tapering off in December. Gold buyers in India, the world's largest consumer of the yellow metal, are investing in it on expectations prices may rise, but imports are likely to fall as limited budgets buy less gold, the head of India's biggest importing bank told Reuters on Saturday.
