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Gold up; demand weak as wedding season ending

Gold up; demand weak as wedding season ending
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First Published: Mon, Jan 03 2011. 01 32 PM IST
Updated: Mon, Jan 03 2011. 01 32 PM IST
Mumbai: India gold prices were a tad higher on Monday afternoon, and traders were unwilling to place new deals as wedding season is nearing an end in the world’s largest consumer of the yellow metal, dealers said.
Traders also eyed the rupee’s movement for direction.
“We have done a few deals from morning. However, demand would be slack at least until pongal (a harvest festival in Tamil Nadu celebrated in later this month),” said a dealer with a state-run bullion dealing bank in Mumbai.
The most-ative February contract on the Multi Commodity Exchange (MCX) was trading 0.09% higher at Rs20,769 per 10 grams.
The contract had struck an all-time high of Rs20,924 on 7 December.
The Indian rupee treaded water as a broad rise in the dollar against major currencies was offset by gains in shares and other Asian peers.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
India’s gold buying is expected to restart during mid-January, when harvest festivals are slated.
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First Published: Mon, Jan 03 2011. 01 32 PM IST
More Topics: Gold | Bullion | Yellow metal | Wedding season | MCX |