ET: Gold offtake remains weak as high prices deter
MUMBAI: India's gold offtake remained weak for a third consecutive session on Friday as prices traded near $1,150 an ounce and traders sought lower prices to stock for weddings and upcoming festivals, dealers said.
"There are stray deals as prices are still hovering near $1,150 (an ounce) since last 24 hours," said a dealer with a bullion dealing state-run bank in Mumbai.
International gold, which guides the domestic markets, was trading at $1,155.40/1,156.20 an ounce as against the previous close of $1,157.95/1,159.95 an ounce. Gold eased in Europe as the euro weakened against the dollar, but lingering fears over Greece's ability to service its debts continued to support interest in the precious metal as a portfolio diversifier.
"Demand could come back if it breaks $1,150," said another dealer with a private bank. India's March gold imports jumped nearly six times from a year ago, a trade body head said, as pent-up demand and steady prices since January revived purchases by the world's largest consumer of the precious metal.
Currently, the wedding season is underway in the world's largest consumer of the yellow metal, with a gold-buying festival -- Akshaya Tritiya -- slated in May.
