Thursday, February 10, 2011

Indian Physical Gold Buying Still Low

According to a Reuters report webbed by the Economic Times, traders are still waiting for more price falls before making more than small deals.

"I have covered for only 10 kg from morning at $1,360 (an ounce)... even the rupee has depreciated," said a dealer with a state-run bullion importing bank in Mumbai....

Dealers said suppliers hiked premiums charged on London prices to $2.2-$2.5 on limited availablity of the yellow metal after supply issues erupted on execssive snowing in refining areas and lower carry over stocks from last year.

"There is a shortage in supply, some banks are even charging $2.5," said the dealer.

Gold hasn't fared that well this morning, which might open some order books in India overnight.

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