Mumbai: Gold edged higher on Friday afternoon, retreating partially from their previous session’s losses, in tandem with overseas markets, though a stronger rupee kept the upside in prices limited, dealers said.
The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.32% higher at Rs 26,835 per 10 grams.
Global gold was slightly higher and headed for its biggest weekly gain in more than a month, shrugging off the credit rating downgrade of Spain ahead of a G-20 meeting whose agenda will be dominated by the euro zone debt crisis.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
“Demand is quite poor as prices are high,” said Mayank Khemka, managing director, Khemka International.
Gold demand is likely to gain pace and will peak with Diwali and Dhanteras festivals slated later in the month. Weddings also take place during this period.