India gold demand low as prices firm

MUMBAI (Reuters) - India's gold demand was low on Thursday as buyers waited for prices to fall below $800 an ounce and for wedding shoppers to troop in, dealers said.

"The purchasing for the December weddings is already done," said Ashwin Choksi, partner at Jamnadas M. Choksi Jewellers in Zaveri Bazaar.

"Now people will come for weddings in January and afterwards."

Retailers say after a stretch of weddings in early December, January to March period is likely to see a lot of weddings next.

Demand has not emerged after a brief buying spell earlier in the week at below $800 an ounce, said dealers in banks.

A dealer in a large foreign bank said there were few advance orders below $780 for low volumes of gold.

Overseas markets firmed and held above $800 an ounce, regaining strength as worries over credit markets and slowing U.S. growth raised the metal's appeal as an alternate investment.

In the local market, prices had eased from early November highs, yet remained above 10,000 rupees per 10 grams mark, which was a deterrent for consumers.

A break below that psychological level could stop scrap sales in the local market and revive demand for fresh, imported gold, dealers said.

Following was the price of .995 gold in the spot market in rupees per 10 grams at 1:00 p.m. :

Bank Thursday Wednesday


Scotia 10,374 10,385

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 1:31 p.m. :

Contract Current price Net change



Dec 10,163 55

Feb 10,222 49