India Wholesale Gold Demand Low Ahead Of Festivals

India''s gold demand was low in the wholesale market on Thursday though a retailer said moderate purchases in line with the season''s demand were being seen. Those who have to buy, have to buy, said Rahul Gupta, director at P P Jewellers in New Delhi. But sales in volume terms are down by 10-15 percent over last year. A large bullion importer, also in New Delhi, said scrap sales and profit taking by investors are meeting the local needs for jewellery just a week ahead of two of the biggest gold buying festivals -- Dhanteras and Diwali.

Bank dealers in Mumbai said there were barely any orders, with most of their clients finding prices too high. Gold prices are firm in the wake of an interest rate cut in the U.S. that has weakened the dollar, while U.S. crude oil prices briefly topped $96 a barrel for the first time owing to an inventory drop in the U.S. The dollar has an inverse relation with gold, while the metal moves in tandem with crude oil.