Mumbai: Gold was steady on Wednesday afternoon near its record high following similar trend in the overseas markets, but traders expected a bout of profit-taking after a 18 percent rally since July, dealers said.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.07% higher at Rs 25,750 per 10 grams at 1:20pm, retreating from a record of Rs 26,198 hit in the previous session.
Overseas gold held steady, hovering near a lifetime high around $1,778 an ounce struck in the previous session, but further gains could be capped by a rebound in equities after the US Federal Reserve’s vow to keep rates near zero.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Physical demand retreated as traders sought bigger declines, even as the Hindu festival of Raksha Bandhan neared.
“There is not much buying, the market is dull due to high prices,” said a dealer with a private-run bullion importing bank in Mumbai.
Gold buying in India, the world’s biggest buyer of the yellow metal, is expected to gain pace on the back of festival and wedding demand.