India gold eases from record; triggers physcial buying

India gold eased a tad from the previous day's record high on profit-taking Tuesday evening, triggering a slight pick-up in physical demand as traders sought to stock ahead of a key gold-buying Akshaya Tritiya festival next month.

India, the world's largest consumer of the yellow metal, celebrates Akshaya Tritiya on May 6, when consumers buy gold to invoke prosperity.

The most-active gold for June delivery was trading 0.13% lower at 21,807 rupees per 10 grams at 5:59 pm, after hitting a low of Rs 21,766.

The contract had struck a record of Rs 21,857 in the previous session stoked by inflationary concerns.

"I booked for around 70-80 kgs from morning. We have booking deals, a small retracement from high has resulted in buying," said a dealer with a state-run bank in Mumbai.

"People are ready to buy below USD 1,490 (an ounce)."

Following were the prices being quoted by Corporation Bank in rupees in the spot market at 3:52 pm :

Tuesday Monday

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Gold .999/10 grams 21,615 21,403

Silver .999/kg 62,985 62,471

Following were prices in rupees on the Multi Commodity Exchange of India Ltd. at 5:50 p.m. :

Contract Current price Net change

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June gold 21,799 -36

May silver 63,682 +188