Tuesday, January 11, 2011

Indian Gold Buying Tailing Off

According to a report by the Economic Times, the stocking-up for the harvest festival and wedding season is tailing off despite the rise in gold being cushioned by a strengthening rupee.
"Sales are dull from morning, Chennai is doing well though, if the rupee appreciates, they (traders in Chennai) may increase their level because of pongal (a harvest festival)," said a dealer with a state-run bullion importing bank in Mumbai.
Despite that newfound dullness, premuims are still elevated and delivery delays are evident.
Dealers said there has been a lag in procuring shipments of the yellow metal as refineries were not operating at their full capacity.

"We are not getting the material immediately, there is a week's delay in supply," said a dealer with a state-run bank in Mumbai.
So, the shortages might disappear if the refineries ramp up to full capacity.

No comments:

Post a Comment