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Gold demand abates as rupee weakens

Gold demand abates as rupee weakens
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First Published: Wed, Jan 20 2010. 02 08 PM IST
Updated: Wed, Jan 20 2010. 02 08 PM IST
Mumbai: India’s gold demand abated on Wednesday as the rupee weakened against the dollar, making the dollar-quoted yellow metal expensive, dealers said.
“It (gold demand) is quiet today, yesterday we did deals at around $1,133/1,135 (an ounce),” said a dealer with a private bank in Mumbai.
International gold was trading at $1,129.45/1,130.25 an ounce as against $1,137.95/1,138.75 at the close of the previous session. Domestic gold demand had picked up late in the previous session.
The Indian rupee dropped to its lowest in two weeks as weakness in other Asian currencies weighed, but gains in the stockmarket helped stem further losses.
Dealers said the traders were awaiting a reversal in the rupee and also a slight ease in prices overseas to enter into fresh deals.
“I have my orders lined up at $1,118-1,125,” said another dealer with a bullion dealing private bank.
India imported 300-350 tonnes of gold in 2009, higher that the previous estimate of a little over 200 tonnes, the head of the Bombay Bullion Association said on 4 January.
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First Published: Wed, Jan 20 2010. 02 08 PM IST