Mumbai: Gold demand in India, the world’s biggest buyer of bullion, stayed poor on Friday, with traders awaiting cues for price direction, as support from overseas markets was offset by a stronger rupee, dealers said.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.07% lower at Rs 28,134 per 10 grams.
“The demand is generally very slow at the moment,” said a dealer with a private bullion importing bank in Mumbai, adding buying would not recover “unless we see a major price correction.”
Global gold hit $1,762.40 an ounce, its highest level since 17 November, on Friday.
The rupee, which rose on Friday, plays an important role in determining the landed cost of dollar-quoted yellow metal.
The wedding season is currently under way and will last till May, raising expectations for higher demand for gold. There are also a number festivals during this period.
Silver for March delivery on the MCX was up 0.28% at Rs 57,180 per kg.