Mumbai: India gold traders continued their purchases on Friday afternoon to replenish stocks for wedding demand, which will start in April, as rupee recovered from its early losses, making the dollar-quoted asset cheaper.
“The rupee is the main driver (for gold sales)... anything below Rs46.30 is good enough for them to buy, a lot of orders were triggered in late trade yesterday at $1,075 (an ounce),” said a dealer with a state-run bullion dealing bank in Mumbai.
At 2:36pm, the partially convertible rupee was at Rs46.2625 per dollar, recovering in line with the domestic equity market.
It had fallen to Rs46.44 after the central bank raised the CRR by a more-than-expected 75 bps at its monetary policy review on Friday. It had closed at Rs46.35/36 on Thursday.
International spot gold was trading $1,082.55/1,083.35 an ounce as against the previous close of $1,086.75/1,087.55 an ounce.
“There are a lot of orders below $1,075,” said another dealer with a private bank said.
“There is wholesale demand at $1,080, infact most of the investors are active rather than jewellery buyers,” said Lokesh kumar Agarwal, chairman of Lucknow-based Brijwasi Bullions and jewellers Pvt. Ltd.