Indian Gold Buying Still Quiescent After Spurt

According to the Economic Times, physical gold trading quieted down after a spurt of buying related to export-covering and domestic sales:

"We had some export covering yesterday and some domestic deals as well at $1,129-1,133 (an ounce), but today, I am not hearing anything from them," said a dealer with a state-run bank in Mumbai.

The new price point for buying has shifted upwards, to $1,110-$1,115; this shift is a reflection of the rupee's strength.

"People are still away from new indents and could come in at around $1,115 and if the rupee stays at the same level," said the state-run bank dealer. "They are looking at $1,110 to buy for weddings," said a private bullion dealing bank dealer.

The prices given make for a rough indication of bargain-hunting support, but gold is now well above that level.