Mumbai: India’s wholesale gold buying remained dull on Thursday afternoon as traders awaited a further fall in prices, and a weaker rupee weighed on sentiment, dealers said.
“Very few transactions are there in gold today, traders are waiting for much lower bargains, say below $1,100 an ounce,” said a official with a private bullion dealing bank in Mumbai.
International gold, which guides the domestic market, was trading $1,105.75/1,106.55 an ounce as against 1,108.85/1,109.65 an ounce in the previous session.
“Since market has seen $1,075 levels recently, they are expecting those kind of levels,” said a dealer with a state-run bank.
The Indian rupee extended its fall in afternoon trade on Thursday tracking weak domestic shares and the dollar’s gains versus major currencies overseas.
A weaker rupee makes the dollar-quoted yellow metal expensive.
India imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said on 27 January.