RTRS: India gold buyers trickle into shops as prices fall
India's gold buyers trickled into shops on Thursday to pick up bargains after prices fell below the keenly watched 15,000-rupee level, dealers said.
"Today there are good volumes and enquiries are pouring in as well," said a dealer with a private bank in Mumbai.
The benchmark June gold contract was 0.91 percent lower at 14,950 rupees per 10 grams at 1:41 p.m., about 6.7 percent down from its record Feb. 20 high of 16,040 rupees.
"Some deals are going on at the moment, and even the strong rupee is helping gold demand," said a dealer with IndusInd Bank.
A strong rupee makes the dollar-quoted asset cheaper.
The Indian rupee rose to its highest in more than a month on Thursday after a surge in local stocks boosted hopes for foreign portfolio inflows, while the dollar's weakness abroad also helped.
A further correction, coupled with a strong rupee, may boost demand in the wedding season that starts from mid-April, dealers said.
"Big orders are there in the range of $901-908 (an ounce)," said the dealer with IndusInd Bank, referring to levels seen in mid-March.
"We expect wedding buying to come in if prices fall further."
