Mumbai: India gold prices were almost steady at its lowest level in a week on Monday afternoon, helping traders continue stocking for the upcoming wedding season, dealers said.
However, lower stocks with banks and foreign suppliers weighed on sentiment, they added.
“Buying was very good last week, and expected to go up as all traders are gearing-up for weddings,” said an official with a foreign bank, which supplies precious metals to India.
The most-active February gold on the Multi Commodity Exchange (MCX) was trading 0.07% higher at Rs 20,276 helped by overseas market and a weaker rupee, after hitting alow of Rs 20,273, nearing a level last seen on 7 January.
International gold rebounded slightly from a fall of one percent in the previous session, shrugging off China’s tightening move on Friday, as physical buying continued to buoy prices.
The Indian rupee hit its lowest level in a month tracking weak regional peers and a choppy domestic sharemarket, which raised concerns foreign funds would continue to repatriate funds.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Wedding season in India, the world’s biggest consumer of yellow metal, would re-start in February.