GOLD demand in India, the world’s biggest buyer of the precious metal, remained robust for a second straight day on Tuesday (October 23) as prices dropped to their lowest in a week, enticing buyers ahead of the peak festive season.
By 2.16 pm, the most-active gold for December delivery on Multi Commodity Exchange was down 0.3 per cent at Rs30,976 ($576.38/£360.11) per 10 grams.
Earlier in the day, the contract fell to Rs30,939 ($575.75/£359.81), the lowest level since October 16.
December silver dropped 0.41 per cent to Rs59,370 ($1105.04/£690.52) per kg, following a similar trend in the world market.
Global gold edged lower on Tuesday after equities gave up early gains.
“Buyers have seen prices rising above Rs32,000 ($595.62/£372.15). At the current level, they are comfortable in making purchases,” said a Mumbai-based dealer with a private gold importing bank.
“There is good buying from jewellers. They are restocking for peak festival season,” the dealer said.
The festival season, traditionally a time to buy gold, is underway in India and will peak with Dhanteras and Diwali next month. Weddings also take place during this period.
The rupee, which edged lower on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
