MUMBAI: Gold importers in India, the world's biggest buyer of bullion, continued to place deals in view of upcoming festivals as prices stayed in the vicinity of their lowest levels in five weeks.
"There has been a sustained pickup in the last 10-15 days as people are comfortable with the current rates, after seeing Rs 32,500," said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler based in Kolkata.
The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.51 percent higher at Rs 31,245 per 10 grams, still near the previous session's five-week low of Rs 31,063, a level last seen on Aug. 31.
Gold prices were 4.6 per cent lower on Friday from the peak of Rs 32,783 struck last month.
Demand continues to be decent, relative to its poor state over recent months, UBS analysts Edel Tully and Joni Teves said in a note.
"If this trend extends further through to Diwali then this would clearly be an added support for gold," the analysts said.
The festival and wedding season in India will start picking up in late October and peak next month during Diwali and Dhanteras, traditionally occasions for buying gold.
Silver also edged higher, following the yellow metal. Silver for December delivery on the MCX was 0.43 percent higher at Rs 62,372 per kg.
