vishnuvega
29-05-2008, 06:38 PM
India's gold demand was low on Thursday even though prices eased under pressure from a stronger dollar and softer crude oil overseas with the slack season keeping buyers at a minimum, dealers said.
"Demand is there only from investors, but it is very little," said Haresh Acharya, head of bullion desk at Parker Agrochem Exports Ltd, a large wholesaler in Ahmedabad. Overseas gold, that guides the local market, struggled to stay above a two-week low hit the previous day mainly as the dollar strengthened on a better-than-expected reading of the US durable goods orders.
Gold generally has an inverse relationship with the dollar as the two compete for funds. Crude oil, with which gold generally moves in tandem, was softer with the dollar's rise offsetting fears of supply disruptions in Nigeria.
A dealer in a nationalised bank said there were few takers of gold on an unfixed basis that indicated people expected prices to soften.
India's first big season for gold purchases is now almost over with the monsoon around the bend, which generally curtails marriages and celebrations. The next season will start in September when a series of festivals and auspicious days for weddings will spur gold purchases.
"Demand is there only from investors, but it is very little," said Haresh Acharya, head of bullion desk at Parker Agrochem Exports Ltd, a large wholesaler in Ahmedabad. Overseas gold, that guides the local market, struggled to stay above a two-week low hit the previous day mainly as the dollar strengthened on a better-than-expected reading of the US durable goods orders.
Gold generally has an inverse relationship with the dollar as the two compete for funds. Crude oil, with which gold generally moves in tandem, was softer with the dollar's rise offsetting fears of supply disruptions in Nigeria.
A dealer in a nationalised bank said there were few takers of gold on an unfixed basis that indicated people expected prices to soften.
India's first big season for gold purchases is now almost over with the monsoon around the bend, which generally curtails marriages and celebrations. The next season will start in September when a series of festivals and auspicious days for weddings will spur gold purchases.