Gold demand likely to improve in a week amid festivals

MUMBAI: Demand for gold is likely to improve in a week amid festivals such as Janmashthami, said Harshad Ajmera, proprietor of Kolkata-based JJ Gold House.

"Demand remains slack currently, but my sense is it will pick up in a week," Ajmera said.

The government recently dashed the bullion industry’s hopes by leaving gold import duty untouched at 10%. Most jewellers were looking for a rationalisation of the duty and expected a 200-basis point cut in the July 10 budget. A basis point is one-hundredth of a percentage point.

Internationally, gold traded at $1,306.34 an ounce (32 gm), extending its drop from a three-week high of $1,322.76 on Friday as investors weighed tensions in the Middle East and Ukraine, while assets in the biggest exchange-traded product capped the largest weekly contraction in three months, Bloomberg said. The metal traded down around $3 an ounce from the Friday close.

Indian prices reflected international trends with gold on MCX trading down Rs 36 at Rs 28,568 per 10 gm early noon.