Lower gold prices fail to spark post-Diwali lull in demand

Mumbai-India (Oct 27)  Gold prices in India slipped to 29,209 rupees per 10 grams on Friday, the lowest level in about two months.

Prices in India were at a premium of up to $3 an ounce over official domestic prices this week, up from $2 last week. The slight increase in premiums was due to traders looking to cover for purchases made when rates were higher.

“After Diwali, demand falters every year. This year, even during Diwali demand was lower than usual,” said Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai.

Last week, Indians celebrated the Diwali and Dhanteras festivals, when buying.

Reuters