Gold importers at bay as prices hover near peak

MUMBAI: Gold importers in India, the world's biggest buyer, on Thursday were unwilling to get stuck with stocks of the yellow metal, whose prices hovered near a record high, even as a key Federal Reserve policy decision neared.

India celebrates Ganesh Chaturthi next week, when gold buying edges up. Festivals and weddings will continue till November.

"Buying is still not there... People are expecting to get direction from US Fed," said a dealer with a private bank in Mumbai, which imports bullion. "There could be some buying if there is a correction till Rs 30,500-31,200."

The market is buzzing with hopes that the Fed will announce another round of quantitative easing, known as QE3, at the conclusion of a two-day policy meeting later in the day.

The most-traded gold for October delivery was 0.21 per cent higher at Rs 31,933 per 10 grams, after hitting a high of Rs 31,964, still near Wednesday's record high of Rs 32,105.

Silver eased for another session as investors booked profits from record rally.

Silver for December delivery on the MCX was 0.21 per cent lower at Rs 63,165 per kg, after hitting a record high of Rs 64,755 in the previous session.