Spot gold price moves up, suggesting marginal demand pickup

MUMBAI: Spot gold, which has been running at a discount to the landed price since the budget on July 10, moved into premium territory in the past few days, indicating a marginal pickup in demand, said Sudheesh Nambiath, senior analyst, GFMS Thomson Reuters, a precious metals consultancy firm.

Demand for gold normally remains tepid in June-July and starts picking up slightly thereafter with the onset of the marriage season in the south and festivals throughout the country.

Meanwhile, gold futures on MCX declined three-fifths of a percent to Rs 27,777 per 10 gm in early noon trade, taking their cue from the international price which traded $2 an ounce below the psychological level of $1,300 an ounce after the US reported better-than-expected economic growth in the quarter ended June.

A stronger dollar spells a lower gold price as the metal is denominated in the US currency.