Mumbai: India’s gold futures tracked overseas gains to edge higher on Wednesday afternoon, despite the rupee’s pull back from two-month lows. Domestic spot demand remained weak in the absence of support from wedding season purchases, dealers said.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.44% higher at Rs21,920 per 10 grams at 3:29 pm.
“Demand was weak. People were waiting for correction. They were waiting for level of around $1,470 an ounce,” said a Mumbai-based dealer with state-run bank dealing in bullion.
“Wedding season demand has been falling. Most people have already made purchases for weddings,” said a dealer with another state-run bank. Wedding season in India, the world’s largest consumer of bullion, will continue through May.
International gold prices rose back above $1,490 an ounce in Europe on Wednesday as a retreat in the dollar encouraged buyers to hunt bargains after the metal’s three-day decline, and as oil prices rebounded.
The rupee pulled back on Wednesday from two-month lows hit in the previous session, supported by firmer regional peers. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.