Mumbai: Gold edged lower on Monday afternoon following weak overseas markets, but a weaker rupee kept the downside in prices limited though traders were unwilling to place new deals for the wedding season, dealers said.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.57% lower at Rs 20,710 per 10 grams at 1:17pm.
“Traders priced in for 45 kg of gold from the morning, but no one is rushing in to buy,” said a dealer with a state-run, bullion-importing bank in Mumbai.
“There is a strong support at $1,414 (an ounce), which traders are eyeing,” said the dealer.
Overseas gold prices inched lower, weighed down by a firmer dollar, but violent unrest in the Middle East as well as an unfolding nuclear crisis in Japan lent support.
The rupee ran out of steam and snapped a six-day rally after most Asian peers and the euro dropped and traders were watching oil import payments.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Wedding season is underway in India, the world’s biggest gold consumer, when demand for bullion goes up. India’s gold imports in October-December rose 30% to 265 tonne.