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Gold demand abates as rupee weakens

Gold demand abates as rupee weakens
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First Published: Mon, Jun 08 2009. 02 24 PM IST
Updated: Mon, Jun 08 2009. 02 24 PM IST
Mumbai: India gold demand abated on Monday on a weaker rupee and scattered buying as the current wedding season draws to a close, traders and dealers said.
“There was some (buying) activity on Friday, but it has turned quiet today. There are no great volumes,” said Daman Prakash, director, MNC Bullion in Chennai.
“Currently, we are not witnessing much purchases as wedding season is coming to an end,” he added. The current wedding season ends this month.
The most active August contract was 0.38% lower at Rs14,579 per 10 grams at 2:31pm.
“The rupee is not in favour of India gold, making it expensive,” said Pinakin Vyas, chief manager IndusInd Bank in Mumbai.
The Indian rupee weakened as the dollar edged higher against major units, and traders braced for profit-taking in the local stock market.
A further drop in prices could rekindle some buying interest, traders and dealers said.
“In case of any correction on the rupee front and overseas gold, demand would pick-up immediately,” added IndusInd’s Vyas.
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First Published: Mon, Jun 08 2009. 02 24 PM IST
More Topics: Markets | India | Rupee | Gold | Bullion |