Indian Physical Gold Buying Tepid, Held Back By Supply Squeeze

According to a Reuters report webbed by the Economic Times, physical buyers pulled back in response to higher prices and scarce supplies.

"It's steady today, I covered for only 40-50 kgs at $1,332-1,337 (an ounce)," said a dealer with a state-run bullion importing bank in Mumbai....

Bank officials said supply remained tight, which could push premiums higher.

"We are not getting metal on time. We could have had a much better January in terms of sales, had it been not for supply issues," said the dealer.

Imports of gold are expected to rise for January, thanks to slumping gold prices
and higher prices for food; the latter gives farmers more disposable income. Harvest season is evidently bountiful, income-wise, which adds to the demand for the metal.