Mumbai: Gold demand in India, the world’s buyer of bullion, edged up as a stronger rupee made the dollar-quoted yellow metal cheaper.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.06 percent lower at Rs 28,065 per 10 grams, after hitting a low of Rs 27,997 earlier.
“Demand is pretty good as rupee is favouring,” said a dealer with a private gold importing bank in Mumbai.
The rupee, which rose past 49 to the dollar in early trading, plays an important role in determining the landed cost of the yellow metal.
The wedding season is under way in India and will last till May. There are a few festivals also during this period.
Silver for March delivery on the MCX was down 0.49 percent lower at Rs 56,555 per kg.