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Gold extends losses; traders pick bargains

Gold extends losses; traders pick bargains
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First Published: Thu, Sep 09 2010. 02 44 PM IST
Updated: Thu, Sep 09 2010. 02 44 PM IST
Mumbai: India’s gold futures extended losses for the second consecutive day on Thursday, triggering bargain buying from physical traders, dealers said.
A stronger rupee also weighed on prices, they added.
“There was buying yesterday and it’s continuing today, I did about 200 kgs from yesterday mostly at around $1,250 (an ounce),” said a dealer with a state-run bank in Mumbai, which deals in bullion. “Appreciating rupee is helping.”
Gold on Multi Commodity Exchange (MCX) was trading at Rs19,083, down about 0.64% from its all-time high of Rs19,211 struck on Tuesday. The contract had shed 0.3% on Wednesday.
The Indian rupee rose tracking strong Asian peers and firmer local shares, but demand for dollars from importers kept gains in check.
A strong rupee makes the dollar-denominated commodity cheaper.
“All traders want to prepare for festivals, so even a 300-rupee fall would increase purchases,” said another dealer with a private bank.
Traditionally, demand for gold in India, the world’s largest consumer of bullion, is high during the September-November festival season. Dhanteras, considered auspicious day for buying gold, falls in November.
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First Published: Thu, Sep 09 2010. 02 44 PM IST
More Topics: Markets | India | Gold | Economy | Bullion |