Gold traders in India re-enter market with stray deals

[SumkidMember]

Mon Apr 9, 2012 3:07pm
Gold traders in India, the world’s largest consumer of the yellow metal, booked stray deals after a three-week long strike, seeking to replenish stocks for a gold buying festival slated later in the month, dealers said.
* “Few orders are there on the lower side… market is slowly gearing up ahead of Akshaya Tritiya,” said a dealer with a private bullion importing bank in Mumbai.
* Jewellers in India ended their three-week strike on Saturday after assurance the government would consider scrapping a budget proposal to levy excise duty on unbranded jewellery.
* Gold buying festival, Akshaya Tritiya, is due later on April 24, when Indians buy gold to invoke prosperity.
* Traders said a 4 percent fall in prices could activate the gold market.
* “People will be buying now after closing shops for weeks together as wedding season is on,” said Harshad Ajmera, proprietor of JJ Gold House. “There were good retail sales yesterday.”
* Gold for June delivery on the Multi Commodity Exchange (MCX) was up 0.48 percent at 28,333 rupees per 10 grams.
* “A level of 27,200-27,500 rupees will be good enough for market to activate,” said the private bank dealer.
* Silver for May delivery traded steady at 56,254 rupees per kg.
Source: http://in.reuters.com/article/2012/04/09/gold-india-strike-silver-prices-idINDEE83807220120409

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