Indian Gold Buying Muted For Second Day In A Row

According to a report by the Economic Times, Indian gold buying remained subdued again because of higher prices in U.S. terms amplified by a weakening rupee.

"There is nothing much today, even yesterday was equally bad," said a dealer with a state-run bullion dealing bank in Mumbai....

"Buying could be seen below $1,190 (an ounce)," said another dealer with a private bank.

Despite the dullness, some upwards price acclimatization is taking place. The trigger point mentioned by the second source used to be $1,180.

Indian Gold Buying Forestalled By Higher Prices

According to a report by the Economic Times, gold buying retreated because prices have passed above the bargain zone.

"On Monday we saw good sales, but by yesterday evening it turned dull... but today only exporters are covering fearing that prices may move higher," said a dealer with a state-run bank in Mumbai, which deals in bullion.

"However, there are no domestic deals...," said the dealer....

"They would buy if prices come to $1,180 (an ounce)," said another dealer with a private bank.

Also adding to the weakening demand was a weakening rupee.

Indian Gold Demand Holding Up

According to a Reuters India report, gold demand from traders is still strong.

India gold traders continued to book deals on Tuesday afternoon as international prices stayed steady while the rupee strengthened making the dollar-quoted asset cheaper, dealers said.

Most of the deals are at $1,180 an ounce and sales are averaging 200 kgs daily in the past one week, said a dealer with a Mumbai-based state-run, bullion-dealing bank, whose imports rose by 90 percent on month to 3.8 tonnes in July....

"Prices below $1,180 are attractive for Indian buyers," said another dealer with a private bank in Mumbai.

That number is up slightly from the $1,175 of one to two weeks ago, likely because of a strengthening rupee.


Speaking of Indian demand, Edel Tully said in a note that physical demand has been fairly high.

"...the presence of very decent physical demand emits positive sentiment. Its persistence indicates that gold is trading more in line with its fundamentals," Edel Tully, precious metals strategist at UBS, a large supplier to India, said in the note.

UBS's five day moving average of sales to India was the highest since late Nov 2008, she added....

In fact, demand has risen to the point of making an upwards revision to the July import figures possible.

India Gets First E-Selling Service For Gold

If you're a resident of India and want one or more 1 kg gold bar(s), you can now order online.

According to a press note, for the first time, a private organisation will participate in e-selling of imported gold bars and coins. The service started from August 2....

In the first phase, Shree Ganesh Jewellery House will sell imported London goods delivery bar with a minimum booking volume of 1 kg and 0.995 per cent purity.

London goods delivery bar is a bar of gold or silver which meets the good delivery rules for gold or silver bars published by the London Bullion Market Association.

Initially, although booking can be made from across India, the physical delivery of the gold will be across 19 districts of West Bengal....

Based upon the hopes for the program, it should increase demand for the metal in India.

Indian Gold Buying Picks Up On Stronger Rupee

According to a report by the Economic Times, Indian gold buying rebounded because a strengthening of the rupee made prices cheaper in Indian terms.

"There is good buying at current levels as the dollar/rupee has fallen, which us helping demand," said a dealer with a bullion-dealing state-run bank in Mumbai....

"Last week was good, we did good volumes from 27th onwards," said another dealer with a private bank. "All our orders got filled on Friday itself and by evening there should be a lot of advance orders," said the state-run bank dealer.

Also having an influence is the need to stock up for the Raksha Bandhan festival on the 24th of this month, and other festivals until November.

Indian Gold Imports Actually Up On Year-To-Date Basis

Despite the sharp drop in imports for July from the same month a year ago, total imports for the first seven months of this year are higher than those for last year. Imports to India are up 7.8%: 171.6 tonnes were brought in from January to July of this year as compared with the same period last year.

Still, there has been a dearth recently due to traditional summer weakness and higher prices. June's import numbers were lower than July's.

Indian Gold Buying Cools Off

According to a report by the Economic Times, Indian gold buying eased off because prices advanced; so did premiums for gold bars.

"Sales today are in less quantity compared to previous days, I did 25-30 deals, in all 150 kgs between $1,160-1,168 (an ounce) yesterday evening," said a dealer with a state-run bank in Mumbai....

Dealers said premiums charged on the market price of the yellow metal could inch higher on the back of contiued offtake from the world's largest consumer of bullion. "It's a seller's market now, for 4 buyers there is only one seller, demand-driven premium would be witnessed in coming days," said Pinakin Vyas, assistant vice-president with IndusInd Bank, a large gold importer.

The article also said premiums on gold bars rose to $1.50/oz from $1.10.


The buying hesitation, which some had feared would take place, hasn't. Evidently, buyers see recent prices as a bargain worth snapping up.

Indian Gold Buying Still Active

According to a report by the Economic Times, buyers are still coming in to stock up for festival season at low prices; that buying pressure pushed up premiums for gold bars.

"We got good order fills at $1,159/1,160 (an ounce) yesterday, and the current levels are still attractive for local buyers," said a dealer with a private bank in Mumbai, which deals in bullion....

"We have plenty of advanced orders in the range of $1,150-1,157," said another dealer with a state-run bank. Premiums have moved up to $1.5 an ounce from 80 cents-$1 per ounce a few days earlier on a surge in demand from India, dealers said.

There has been some downward price acclimatization, as the present bid range is lower than it was; the knocked-out bids at $1,160-$1,175 have not been replaced. But, the rise in premiums does show an active market.

Indian Gold Buying Picks Up After Plummet

According to a report by the Economic Times, lower prices have spurred Indian gold buying.

"Buying is definitely there.... Traders, who bought 10 kgs a few days back, are now buying 40 kgs," said Harshad Ajmera, proprietor, of Kolkata-based JJ Gold House...

"There could be more buying if prices fall to about $1,150 (an ounce)," said dealer with a state-run bank in Mumbai.

Also aiding the buying spree was a strengthening rupee, although the direction of Indian stocks didn't lend much confidence to a bullish outlook for gold.

Indian Gold Imports For July Halve

According to a Reuters India report, Indian gold imports for this month are slated to come in at about half of what they were for July of '09.

"It is all because of the prices," [head of Bombay Bullion Association Suresh] Hundia told Reuters, referring to the firm levels gold has held on for the greater part of the month in the local market.

In the international market gold prices went into a gradual decline in July after hitting highs in the previous month as buyers weighed its investment appeal amid a sputtering global economic recovery.

Though prices were softer in July from the month ago, Indians were still not used to the levels, Hundia said.

The estimate for this month is 14-15 tonnes. July of '09's figure was 28.4 tonnes.

Indian Gold Buying Still Soft

According to a report by the Economic Times, gold buying remained subdued as traders still await lower prices.

"There are a few deals in between $1,180-1,185 (an ounce), but in all weak as it was yesterday," said a dealer with a state-run bank in Mumbai, which deals in bullion....

"Traders are waiting for a breakout on either side of $1,180-1,200, where I have advanced buy orders," said another dealer with a state-run bullion dealing bank.

The article also notes the rupee's strengthening, which has helped sentiment somewhat.

Indian Gold Buying Pulls Back Somewhat

According to a report by the Economic Times, Indian gold buying eased from Friday's levels as lower prices are still being waited for.

"Today sales are down, but Friday we did good volumes at $1,187-1,195 (an ounce)," said a dealer with a state-run bullion dealing bank in Mumbai. "There was activity on Friday evening but today there are enquiries, but nothing is materialising," said another dealer with a private bank....

Traders and dealers said the recent correction in prices seems to have pushed up sales in July as traders replenished stocks for the upcoming festivals, which will last till November. "I ended up booking 5 times more for shipments than last month," said the dealer at the state-run dealer. "I have plenty of orders below $1,900 (an ounce)," said the private bank dealer.

Also mentioned in the article was a forecast of somewhat higher level of imports into India this year as compared to last year's 480-490 tonnes.

Indian Gold Demand Stays Weak After Early-Week Buying Spurt

According to a report by the Economic Times, gold traders are still holding off as a result of gold prices recovering.

"Volumes are very thin, I must have done only 20 kgs from morning," said a official with a state-run bullion dealing bank.

How strong demand was, is indicated by a Reuters report which describes overseas supplier shortages caused as a result of the buying spree.

[A] sharp drop in prices as a result of weak US inflation numbers triggered buying, taking sellers by surprise.

“A couple of them are now taking seven days to supply gold, this problem exists with some of them, so we prefer to buy from those who will deliver us promptly,” said a official with a state-run bank dealing in bullion.

Indian gold demand is set to pick-up for the festivals, starting with Raksha Bandhan on 24 August, and extending till Dhanteras in November, the single-biggest gold buying day.

“There was less demand in May and June, but due to a price fall in July demand rebounded, creating supply constraints,” said another official from the state-run bank, which imported 40 tonnes of gold in the last fiscal year....

The report mentions inventory levels are normally low this time of year, as monsoon season typically means low demand.


It's an open question whether that demand was unintended channel-stuffing - i.e., demand taken away from coming weeks because bargains were realized. If so, then demand in forthcoming weeks will be weaker than it otherwise would have been.

Indian Gold Buying Tails Off

Again, the reason is a wait for lower prices. According to a report from Reuters India, that reason plus a weakening rupee explains the new dearth.

"The orders are still at lower levels below $1,180 (an ounce), so buy orders are not getting triggered," said a official with a private bullion dealing bank in Mumbai.

"Nothing much is happening today as the price [drop drop yesterday] is not much in local terms due to a weak rupee," said a dealer with a state-run bank.

The next festival isn't until August 24th, so stockists have some time to wait.

Indian Gold Buying Slows Down As Prices Advance

According to a report by the Economic Times, gold buying retreated because traders are waiting for lower prices to stock up, with a weakening rupee still holding back demand:

"Buying receded after prices moved above $1,190 (an ounce) last evening, even the rupee is not acting in favour," said a dealer with a state-run bank in Mumbai, which deals in bullion....

"If prices fall below $1,175, then most of my buy deals would get triggered," said another dealer with a private bullion dealing bank.

$1,175 is lower than recent prices reported by that same source. This could be because buy orders at above that price were taken out, but the weakening rupee is also influencing the drop-down. So is downwards price acclimatization, encouraged by a slump to that same $1,175 early yesterday morning. It may only be me, but those traders seem more eager to get on the low end of the market than in the spring.

Indian Gold Buying Accelerates

According to a report by the Economic Times, continued drops in gold presented another opportunity for resellers to stock up for festival season.

"This is the last week of July before festivals in August, so physical traders are taking every opportunity to enter," said Pinakin Vyas, assistant vice-president, treasury, with IndusInd Bank, a gold importer.... "I priced-in for a sizeable quantity of gold from yesterday evening below $1,190 levels," said Vyas.

A lower prices is having its effect, even if a weakening rupee is encouraging stockists to buy at lower US$ prices. It might be an auspicious season for them this time 'round.

Indian Gold Buying Strengthens On Lower Prices

According to a report by the Economic Times, there was a fair bit of buying due to gold prices dropping below $1,200.

"Good fall has led to good demand... there were deals at all levels be it $1,200/1,190/1,186 (an ounce)," said a dealer with a private bank in Mumbai, which deals in bullion....

"My order sheet is showing advance orders below $1,185," said another dealer from a state-run bullion dealing bank.

Sentiment, though, has been dampened somewhat by a weaker rupee.

Gold Buying Picks Up In India

According to a report by the Economic Times, gold traders are trickling in to the buying counters.

"I booked deals for quite a decent quantity since yesterday as prices are almost flat," said a dealer with a state-run bullion dealing bank.

"Jewellers are offering discounts of 7,000 rupees ($149.8) per kg," said another dealer of a private bank, which deals in bullion.

"I have orders below $1,204," said the first dealer. However, a weaker rupee, which makes the dollar-quoted yellow metal expensive, weighed.

That trickle is likey to become a flood if gold prices stay flat after plummeting earlier this morning.

Indian Gold Buying Weak Yet Again

According to a report by the Economic Times, there was little buying in the Indian wholesale market because prices are still up. This near-dormancy may change if the rupee co-operates.

"It is very quiet... there were a few orders yesterday which got triggered at $1,205/1,210," said a dealer with a state-run bank in Mumbai, which deals in bullion....

"I have plenty of orders below $1,190," said another dealer with a private bullion dealing bank.

Also from India comes an estimate that says gold imports for 2010 will slightly exceed those for 2009. The Indian Bullion Market Association believes imports will be 500-500 tonnes this year; last year's were 480-490 tonnes.

Indian Gold Buying Dormant

Despite the strengthening rupee, Indian gold buying is still weak due to higher U.S. prices.

"There have been no deals since yesterday evening after the sudden jump in prices," said a dealer with a state-run bullion dealing bank in Mumbai....

"I have plenty of orders in between $1,185-1,195 (an ounce)," said another dealer with a private bank.

A new festival season is coming up in late August and September, so resellers have lots of time to stock up.