Monday, 9th February 2004 (3708 views)

India's wedding season has failed to boost the domestic gold market, as buyers wait for some price stability.

According to traders canvassed by the Reuters news agency, jewellers were not making moves to book new orders, after a rush to stock up in the last week took place when world prices fell below $400 an ounce.

Usually gold demand in India rises in this period as parents give gifts of gold jewellery to brides for financial security, and jewellery accounts for 85 per cent of India's gold demand.

Traders are predicting that if prices hover around $405 an ounce, then Bombay demand is expected to fall from 300-400 kg a day this week, compared to 600 kg a day last week.

One Ahmedabad-based trader told Reuters: 'Consumers are waiting for a comfortable price level to purchase gold jewellery for marriages, but they will have no choice but to buy if prices remain firm or rise further.'

 

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