Mumbai: Gold traded a tad lower, easing from its highest level in nearly two weeks, weighed by a strong rupee, which makes the dollar-quoted yellow metal cheaper, analysts said.
The most-active gold for April delivery on the Multi Commodity Eschange (MCX) was trading 0.15% lower at 20,982 rupees per 10 grams, falling from a high of Rs 21,045 on Wednesday, a level last seen on 14 March.
“They want a bigger fall in prices, another Rs 500 fall could bring in buyers,” said a dealer with a state-run bullion importing bank.
Rupee stayed stronger drawing comfort from strong local shares and robust dollar inflows. The local currency plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Firm foreign markets, however, kept the downside in prices limited. Overseas gold edged up, shrugging off a stronger dolar, as concern over the euro zone debt crisis worsened after the Portuguese prime minister’s resignation raised the chances of Lisbon seeking a bailout.
Wedding season is underway in India, the world’s biggest gold consumer, when demand for bullion goes up. India’s gold imports in October-December rose 30% to 265 tonne.