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Gold extends gains to over 2-week high; demand muted

Gold extends gains to over 2-week high; demand muted
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First Published: Tue, Jul 12 2011. 02 33 PM IST
Updated: Tue, Jul 12 2011. 02 33 PM IST
Mumbai: Gold futures rose on Tuesday afternoon, extending gains for a fourth straight session to its highest level in over two weeks, owing to a weaker rupee, which made the dollar-quoted yellow metal expensive, analysts said.
Physical buying turned slack as prices touched a crest, while premiums, charged on London prices, steadied at $1.5-1.8 an ounce.
“There were hardly any 3-4 deals as rates have gone up,” said a dealer with a state-run bullion importing bank in Mumbai.
The most-traded gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.30% higher at Rs 22,540 per 10 grams, after hitting a high of Rs 22,598, a level last seen on 23 June.
The rupee fell to its lowest in more than a week on Tuesday, dragged by the euro’s slide, weakness in Asian peers and domestic equities.
India, the world’s biggest buyer of bullion, is in the middle of the sowing season, when farmers, the traditional buyers of the yellow metal, divert their savings to agricultural equipments and fertilizers.
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First Published: Tue, Jul 12 2011. 02 33 PM IST
More Topics: Markets | India | Gold | Commodity | Bullion |