Mumbai: India’s gold prices fell for a fifth straight day on Tuesday on a strong rupee, spurring local demand in the middle of the wedding season that lasts till June end, dealers said.
“Demand has increased many folds compared to last week as prices have fallen,” said a dealer with a state-run bank in Mumbai. “Jewellers are stocking for wedding demand,” he added.
The most traded June contract was 0.30% lower at Rs14,164 per 10 grams at 1:35pm, after having lost more than 4.5% in the last four sessions.
A strong rupee makes the dollar-quoted asset cheaper.
The Indian rupee traded strong, but was off early highs after the stock market seesawed as investors locked in profits.
A further fall in prices could trigger additional demand, dealers added.
“A fall to about $900 (an ounce) could result in more demand,” said another dealer with a private bank in Mumbai.