On Tuesday, Indian gold futures reduced resulting losses in overseas markets but demand still weak as buyers were on the sidelines, eager for more falls.
On the Multi Commodity Exchange (MCX) the June gold delivery decreased by 0.69% to reach Rs. 26,263 per ten grams at 3.26pm.
Mumbai-based jeweler stated “Retail demand is slowing down. Several prospective buyers made purchases earlier this month. Now we are heading towards the lean demand season” and added “Unless we see severe drop in prices, say by four or five%, demand will remain subdued.”
The Reserve Bank of India (RBI) limited banks from consignment imports of gold, excluding jeweler exporters, after imports increased more than 150% in April, regardless of a 50% climb in import duty in January.
The RBI said on Monday banks would not be certified to give loans in contradiction of units of gold exchange-traded funds (ETFs) and gold mutual funds.