Mumbai: Gold buyers refrained from taking fresh positions on Thursday as prices hovered near their highest level in two months on firm global markets and a weaker rupee, analysts said.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.38% higher at Rs 28,283 per 10 grams, after hitting Rs 28,365, nearing the 28,434 level touched in mid-December.
“Demand is still subdued.... prices are slightly higher than comfort zone,” said a dealer with a gold importing private bank in Mumbai.
The rupee, which weakened on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Global gold edged higher, buoyed by a euro strengthened by hopes Greece was moving closer to a bailout deal, and surprisingly strong China inflation also supported sentiment.
Silver for March delivery on the MCX was 0.28% higher at Rs 56,978 per kg.