Gold Price Update

     Gold importers from India, the world's biggest buyer of the metal, waited for price falls to stock the yellow meal ahead of festivals as prices stayed in the vicinity of their highest level in more than a week.

  Gold price on Friday, Oct 12, 2012 fell by Rs 160 to Rs 31,640 per 10 grams in the national capital, due to slackened demand at prevailing higher levels. Due to "Subdued demand from jewellery makers as well as stockists at existing higher levels and poor retail buying due to ongoing 'Pitrupaksh' (a period considered inauspicious by Hindus) kept pressure on gold prices,". Gold of 99.9 and 99.5 per cent purity fell by Rs 160 each to Rs 31,640 and Rs 31,440 per 10 grams, respectively. The metal had gained Rs 320 in the last three sessions. Sovereigns remained steady at Rs 25,450 per piece of eight grams in limited deals.

   
  The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.17 percent higher at 31,375 rupees per 10 grams, after touching a one-week high of 31,511 rupees on Thursday. Gold has risen by 13 percent in 2012 so far, making it one of the best-performing commodities this year, inspite of a lackluster first half of the year.

     A dealer with a private bullion importing bank in Mumbai said that, “Even though the volumes are not that big as people are expecting a correction in gold”. The festival and wedding season will start picking up in late October and peak next month during Diwali and Dhanteras, traditionally occasions for buying gold.