Gold offtake slows on MCX as buyers expect price to correct to Rs 25,000

MUMBAI: Gold offtake on commodity bourse MCX has slowed considerably.

Ketan Shroff, MD of Mumbai-based bullion dealer Penta Gold, said consumers expect prices to correct to Rs 25,000 per 10 gm from the current levels of Rs 26,600. “There is a belief that gold will correct to Rs 25,000, so offtake by retail consumers has really slowed,” said Shroff.

“It’s likely that the international rate, currently below $1200 an ounce (32 gm), would rise to around $1220, but the overall trend is bearish,” he added. Gold was trading at Rs 26,639 per 10 gm on the MCX Wednesday, 20 basis points higher than the previous close. Options pricing data of the CME group, however, indicates a likely breach of the $1,200 an ounce level over the short to medium term, which could raise domestic gold rates to above Rs 27,000 per 10 gm.