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Gold extends losses; traders stay away

Gold extends losses; traders stay away
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First Published: Wed, Mar 09 2011. 01 49 PM IST
Updated: Wed, Mar 09 2011. 01 49 PM IST
Mumbai: Gold extended losses on Wednesday afternoon, following weak overseas markets and a strong rupee, but physical traders were unwilling to place bigger deals waiting for better bargains, dealers said.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.08% lower at Rs 21,006 per 10 grams at 1:37pm.
The contract is still down 1.3% from the record high of Rs 21,274 struck on Monday.
“We have been able to sell very small quantity, I covered for 45 kgs at $1,426-1,428 (an ounce),” said a dealer with a state-run, bullion-importing bank in Mumbai.
Overseas gold tracked oil lower and was under pressure from firmer equities, but bargain hunting from jewellers as well as worries that violence in Libya and the Middle East would spread could offer support for the metal, which has dropped from a lifetime high.
A strong rupee makes the dollar-quoted yellow metal cheaper for local buyers. The Indian rupee edged up on expectations of dollar inflows at next week’s debt limit auction, but a weak euro and dollar buying by oil firms capped the gains.
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.
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First Published: Wed, Mar 09 2011. 01 49 PM IST
More Topics: Markets | India | Gold | Commodity | Rupee |