India gold physical buying lacklustre after the harvest festivals and prices move higher

India gold physical buying was lacklustre after the harvest festivals and as prices gained further for a second session, traders said. Silver prices remained steady.

“Deals are lower than last month as gold has come up to $1,650 (an ounce) from $1,540,” said a dealer with a state-run bullion importing bank.

Harvesting festival in India, the world’s biggest consumer, started on Jan. 15, when rural demand, that contributes to 70 percent of imports, for the yellow metal goes up. Weddings also happen during this period.

The most-active gold for February delivery on theMulti Commodity Exchange (MCX) was up 0.24 percent at 27,572 rupees per 10 grams. The contract had gained 0.3 percent on Saturday.

Silver futures also traded flat, continuing the trend for a second consecutive session. Silver for March delivery on the MCX was up 0.23 percent at 52,243 rupees per kg.  - Reuters

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Posted by admin on Jan 16 2012. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry