Mumbai: Gold fell more than 1% on Monday afternoon following weak overseas market, triggering slight physical demand as traders sought to stock for the key gold-buying festival this week and ongoing wedding season, dealers said.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was trading 1.12% lower at Rs 22,564 per 10 grams at 2:52pm, falling from a record high of Rs 22,856 struck on Saturday.
“There are good deals at current levels. I must have sold 200 kgs at $1,550 (an ounce),” said a dealer with a state-run bank in Mumbai, adding “gold will come to $1,544.”
Overseas gold fell initially on news that al-Qaeda leader Osama bin Laden was killed in a US-led operation in Pakistan.
Although 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.
India, the world’s largest consumer of the yellow metal, will celebrate Akshaya Tritiya on 6 May, when demand for bullion tends to go up.