Mumbai: Gold extended gains, moving near its record high on Thursday afternoon, following overseas markets and a weaker rupee, with traders waiting for better bargains, dealers said.
“There were a very few deals at $1,429.50/1,431,” said a dealer with a state-run bullion importing bank in Mumbai.
“If prices come below $1,424 we could see buying,” said the dealer.
Most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.06% higher at Rs 21,060 per 10 grams, after hitting a high of Rs 21,109, nearing the record high of Rs 21,274 struck on 7 March.
A weaker rupee makes the rupee-denominated yellow metal expensive. The Indian rupee weakened tracking weak domestic shares and overall dollar strength overseas. However, some dollar inflows through external commercial borrowings (ECB) by companies prevented a sharp fall in the Indian unit.
The high-demand wedding season is underway in India, the world’s largest consumer of the yellow metal. India’s gold imports in October-December rose 30% to 265 tonne.