Indian Physical Gold Buyers Still Hesitant Despite Price Drop

According to a Reuters report webbed by the Economic Times, yesterday's plummet did encourage some gold buying by Indian traders but not a whole lot more. Expecting further declines, many of them shied away as gold recovered a little last night.

"They won't want to book deals now. Yesterday we booked for 150 kgs in between $1,387/1,416 (an ounce)," said a dealer with a state-run bank in Mumbai.

The rupee was initially stronger, making the price lower for Indians, but the gains melted away later.