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Gold prices steady; demand stays weak

Gold prices steady; demand stays weak
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First Published: Tue, Jan 04 2011. 02 15 PM IST
Updated: Tue, Jan 04 2011. 02 15 PM IST
Mumbai: Gold prices were steady on Tuesday afternoon tracking overseas markets, but demand stayed weak as wedding season neared its end in the world’s largest consumer of bullion, dealers said.
“There is less demand as prices are really volatile, some stagnation is coming,” said a dealer with a state-run bullion importing bank in Mumbai.
At 1:29pm, the most-active gold for February delivery was flat at Rs 20,773 per 10 grams, after recovering from a low of Rs 20,735 struck earlier.
International gold held steady, supported by the physical demand outlook, but a stronger dollar following the release of positive US data weighed on the market.
A weaker rupee kept the downside limited.
The rupee weakened after an early rise as traders covered short positions in the dollar, tracking a reversal in stock market gains and in line with a broadly strong U.S. unit overseas.
India’s gold buying is expected to restart in mid-January, when harvest festivals are slated.
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First Published: Tue, Jan 04 2011. 02 15 PM IST
More Topics: Markets | India | Gold | Commodity | Rupee |