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Gold adds gains to high; demand retreats

Gold adds gains to high; demand retreats
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First Published: Mon, Jun 20 2011. 02 15 PM IST
Updated: Mon, Jun 20 2011. 02 15 PM IST
Mumbai: Gold rose on Monday afternoon, extending gains to over the highest level in more than a week, while traders retreated after picking up bargains last week as a weaker rupee made the dollar-quoted yellow metal expensive, dealers said.
The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.14% higher at Rs 22,654 per 10 grams at 1:56pm, after hitting a high of Rs 22,675, a level last seen on 9 June.
“There were a few deals on Thursday and Friday... however there are no deals today,” said a dealer with a state-run, bullion-dealing bank.
Dealers said premiums charged on the yellow metal on London prices eased by 20 cents to $1.2-1.4 an ounce due to lack of demand.
The rupee weakened to its lowest in three weeks on Monday, weighed by losses in domestic shares and the euro, with dollar demand from oil companies also piling pressure.
The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
India, the world’s biggest buyer of yellow metal, is in a seasonally lean demand period due to monsoon as farmers divert their savings on agricultural equipments and fertiliser for summer-sown or kharif crops.
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First Published: Mon, Jun 20 2011. 02 15 PM IST
More Topics: Markets | India | Gold | Commodity | Bullion |