MUMBAI – India’s gold demand remained weak on Monday as prices hardened and buyers still stayed on the sidelines anticipating falls ahead, traders said.
"Local gold is still available at a discount of 450 (rupees per 10 grams) than bank gold," said Harshad Ajmera, proprietor of Kolkata-based JJ Gold House.
"Only if prices breaches $900, then we might see some demand," Ajmera added.
"If prices move towards $925-930, then scrap flow starts," said Ajmera.
"Scrap had stopped in between, when prices had reached $905-910," said Ajmera.
The benchmark April gold contract was almost flat at 15,513 rupee per 10 grams at 1:34 p.m., after hitting an intra-day high of 15,573 rupees.
"There is no demand…. we are getting alot of scrap," said Ajay Singh, proprietor of Jaipur-based Kiran Jewellers, which caters to Rajasthan, Uttar Pradesh and Gujarat markets.
The rupee has depreciated hurting demand Singh said, adding there could be some demand if prices move below 15,000 rupees.
A weak rupee makes the dollar-quoted yellow metal expensive