MUMBAI: India gold buying retreated on Monday, after the slight pick-up seen in the previous session, as traders awaited a fall in prices, with market players pointing to improved sales so far in July due to upcoming festivals. "Today sales are down, but Friday we did good volumes at $1,187-1,195 (an ounce)," said a dealer with a state-run bullion dealing bank in Mumbai. "There was activity on Friday evening but today there are enquiries, but nothing is materialising," said another dealer with a private bank.
Gold futures on the Multi Commodity Exchange (MCX) was trading 0.05 percent higher at 18,248 rupees per 10 grams at 1:26 p.m., while international spot gold was at $1,192.75/1,193.55 an ounce, after hitting an intra-day low of $1,183.31 on Friday.
Traders and dealers said the recent correction in prices seems to have pushed up sales in July as traders replenished stocks for the upcoming festivals, which will last till November. "I ended up booking 5 times more for shipments than last month," said the dealer at the state-run dealer. "I have plenty of orders below $1,900 (an ounce)," said the private bank dealer.
India, which accounts for more than 20 percent of global demand, will celebrate the Hindu festival of Raksha Bandhan on Aug. 24, and Janmasthami and Ganesh Chaturthi in September.
The world's largest consumer of bullion may import 500-550 tonnes of gold in 2010, up from 480-490 tonnes a year earlier, the head of a trade body said last week.
