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Gold falls from record high, triggers physical buying

Gold falls from record high, triggers physical buying
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First Published: Tue, Apr 26 2011. 02 37 PM IST
Updated: Tue, Apr 26 2011. 02 37 PM IST
Mumbai: Gold prices fell from record high, extending losses for another session, following overseas markets, prompting traders to stock ahead of the key buying festival, Akshaya Tritiya, slated early next month, dealers said.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was trading 0.27% lower at Rs 21,926, falling from a record high of Rs 22,172 hit in the previous session.
“We have done good sales from morning. I covered for 150 kgs at $1,498-1,504 (an ounce),” said a dealer with a state-run bank in Mumbai, adding “I have plenty of enquiries for silver as well.”
Silver fell sharply from its record high following the yellow metal.
Overseas silver fell nearly 5%, snapping a rally in previous sessions that had carried it close to a record high, as option traders sold back metal to cover risks ahead of options expiry later in the day.
A weaker rupee kept the downside in prices limited, analysts said. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
The rupee weakened, dragged by month-end demand for dollars from oil refiners and weak local equities, with sentiment turning cautious a day before the US Federal Reserve’s rate decision.
India, the world’s largest consumer of the yellow metal, will celebrate Akshaya Tritiya on May 6, when demand for bullion tends to go up.
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First Published: Tue, Apr 26 2011. 02 37 PM IST
More Topics: Markets | India | Money | Commodity | Gold |