Mumbai: Gold edged higher on Monday morning following a weaker rupee, and premiums in the physical market steadied even as buying remained absent in the peak wedding season, dealers said.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.15% higher at Rs 29,243 per 10 grams.
Weakness in the rupee, which plays an important role in determining the landed cost the dollar-quoted yellow metal, makes the asset expensive.
The rupee drifted lower after the currency had climbed 2% last week snapping a four-week slide.
Gold prices in the overseas markets traded steady, after posting their sharpest weekly rise in more than a month.
Traders said premiums charged on London prices remained flat at $1-1.25 per ounce on London prices. Weddings will continue till December in India, the world’s biggest buyer of bullion.
“Buying is not really very encouraging,” said a dealer with a private bullion importing bank in Mumbai, adding there has not been much change in premium since supply is steady.“