Mumbai: Gold traders in India, the world’s biggest buyer of bullion, continued to stay on the sidelines on Friday as prices extended gains to their highest level in more than a month, dealers said.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.84% higher at Rs 27,820 per 10 grams, after hitting Rs 28,084, its highest since 21 December.
“Demand is zero as prices are too high... this situation may continue,” said Haresh Acharya, head of bullion desk, Parker Bullion.
The rupee, which touched a two-and-a-half month high on Friday, kept the upside in prices limited. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Global gold rose more than 1% to a 6-1/2-week high as stock markets, commodities and the euro all rallied after the U.S. Federal Reserve extended by 18 months its plan to keep interest rates low.
Silver extended gains to its highest level in more than six weeks.
Silver for March delivery on the MCX was 0.87% higher at Rs 56,900 per kg.