Wednesday, February 9, 2011

Indian Physical Gold Buying Still Slow

According to a Reuters report webbed by the Economic Times, traders are still holding off from buying.
"Buying was good [the night before last night], but towards the U.S. time, activity has been dull due to sudden 1 percent rise in prices," said Pinakin Vyas, assistant vice-president with IndusInd Bank in Mumbai....

Dealers said gold supplies showed signs of improvment after a brief shortage due to excessive snowing in the refining areas and low carry-over stock.

"Supplies are improving, but still there is a lag of 4-5 days compared to 7-10 days earlier," said Vyas.

There seems to be an assumption that yesterday's rise was aberrational. So far, the gold market hasn't given much credence to that assumption.

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