Trade slows as market awaits direction

Even a two-month high in yen-priced gold,after a fresh Bank of Japan easing move sank the currency,failed to cause much excitement among Japan’s gold investors.

On the physical gold market we only see muted selling,as investors are waiting for 4,400-4,500 yen/gram to sell,said a Tokyo-based dealer.

Yen-denominated gold rose to as high as 135,549 yen an ounce,or 4,358 yen per gram.

The dealer said there were some buying orders from Southeast Asia and Hong Kong,but most buyers were waiting for a better entry point,close to $1,700 an ounce.

Premiums in Singapore stood at $0.8-$1 an ounce above London prices,unchanged from a week earlier. In Hong Kong,dealers quoted a range between 90 cents to $1.50.

In India,the world’s largest gold consumer,buyers re-emerged after prices hit their lowest level in a week,stocking up for demand during the ongoing wedding season.

The most-active gold futures contract for April delivery on the Multi Commodity Exchange traded at 28,095 rupees per 10 grams,just above the one-week low of 27,958 rupees hit in the previous session.

But demand will largely depend on moves in prices,even though India’s wedding season is still under way,traders said.

India’s gold imports in the first quarter may fall by a fourth,as the limited upside of gold prices dampen buying interest,a Reuters poll showed.

Activity is there,but not in a big way,said Pinakin Vyas,assistant vice-president with IndusInd Bank,a large gold importer.