Mumbai: Gold futures edged lower on Monday tracking a drop overseas, lifting demand in domestic physical markets, which were subdued on the weekend, dealers and jewellers said.
At 4:18pm, the most-active gold for June delivery on the Multi Commodity Exchange was trading 0.1% lower at Rs 21,391 per 10 grams.
“Demand has improved. Jewellers are buying hoping for a rise in retail demand in coming weeks,” said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.
With the wedding season underway in India, demand for the yellow metal is strong as gold jewellery forms part of the bridal trousseau.
International spot gold was trading at $1,468.35 an ounce against $1,472.70 late in New York on Friday.
The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, fell on Monday, limiting losses in bullion.
India’s demand for gold should be robust in 2011 despite the likelihood of higher prices, pushed by geopolitical tensions, according to the World Gold Council.