Monday, January 24, 2011

Indian Physical Gold Traders Shying Away Despite High Prices

According to a Reuters report webbed by the Economic Times, still-low gold prices have not encouraged traders to come in and buy with both hands.
"Last week sales were good, I priced in for 800 kgs, but this week sales are dull so far," said a dealer with a state-run bullion dealing bank in Mumbai....

Gold traders have been stocking the yellow metal taking advantage of the two-month trough ahead of the wedding season due next month.

"Sales are lower compared to last week. People are expecting further correction in prices to $1,325 (an ounce)," said Pinakin Vyas, assistant vice-president with IndusInd Bank.
Downward price acclimatization has set in. Left unmentioned is the possibility that stocking up for the harvest and wedding seasons is mostly complete as of now, which would leave stockists in a position to be more choosy about price.

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