The Hindu Business Line : Gold, silver prices recover

Gold price in the London was fixed at $887.80 an ounce (A.M. fixing) on January 23, up from $862 /oz (A.M. fixing) and $875/oz (P.M. fixing) on January 22.

In a mirror reflection of the international market, domestic gold prices were quoted at Rs 11,370 per 10 gm on January 23 up from Rs 11,055 per 10 gm the previous day.

Despite the price level being near the psychological Rs 11,000-mark, there was some buying at the trade level.

In the domestic market, silver prices recovered and closed at Rs 20,570, a gain of Rs 420.

During the last two days, there have been reports of wholesalers purchase to the tune of a couple of tonnes across the country by some banks, said Mr Ajay Mitra, Managing Director of World Gold Council, India. However, overall offtake of the yellow metal has been mixed in the country, he added.

RiddiSiddhi Bullions Ltd, which introduced online trading in gold this month, said it is seeing 40 to 50 kg delivery per day in Mumbai and Ahemdabad.

“Demand is subdued as there is no seasonal buying as the prices are high,” said Mr Prithviraj Kothari of RiddiSiddhi Bullions.

Currently, the firm has registered about 100 clients for online buying and selling of gold and expects about 300 kg turnover per day across all centres as prices soften and settle in at a level.

“We have seen some demand pick up with the dip in prices and we have booked some fresh consignments as we see some buying potential ahead,” said a bank official of Axis Bank.

Prices have to come further within a narrow price range to see heavy demand from wholesalers as well as retailers, said Mr Moses Harding of Indusind Bank.

At the jewellery retail level, there has been a slight rush in buying as buyers feel the need to rush in their buying in expectation of further escalation of prices, said Mr Ankit Gala, Director of Antara Jewellery Pvt Ltd.

But as prices have come off from the Rs 11,500 plus level, the market has not witnessed much scrap sales, said a scrap trader in Zaveri Bazaar.

Scrap sales came down to less than half from what was witnessed at the time prices where at the peak, he added. Today the scraps are sold at Rs. 11,000 per 10 gm.

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