MUMBAI: India gold buying continued to be muted for a second day on Friday as traders were cautious about placing fresh deals after prices traded near all-time high, dealers said.
"There are no deals at these rates, we just had a couple of customers from morning," said a dealer with a state-run bullion dealing bank in Mumbai, adding "there is an initial resistance from traders to accept near-record prices."
Gold on Multi Commodity Exchange (MCX) was trading 0.12 percent higher at 19,066 rupees per 10 grams, after hitting a high of 19,075 earlier, just 0.6 percent down from the all-time high of 19,198 rupees struck in early June. "People would be happy even if there is a small decline of $20 (an ounce)," said another dealer with a private bank.
India, the largest consumer of the yellow metal, is going through its festive season, and celebrations will extend till Dhanteras, the single largest gold buying day, in November. "We are expecting festivals like Ganesh chathurti and navratri may bring in demand," said the first state-run bullion dealer. India is seen importing 504.5 tonnes of gold in 2010, up from the last year's 480 tonnes, a Reuters poll of 10 participants said.
