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Gold rises over 1%; demand retreats

Gold rises over 1%; demand retreats
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First Published: Tue, Aug 16 2011. 02 18 PM IST
Updated: Tue, Aug 16 2011. 02 18 PM IST
Reuters
Mumbai: India gold tracked overseas uptrend and extended gains to rise more than a percent on Tuesday afternoon, pulling down retail demand ahead of the key festival season.
A strong rupee, however, kept the upside limited.
At 1:5 8 pm, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 1.65% higher at Rs 26,112 per 10 grams. On 10 August, it had hit a record high of Rs 26,45.
Overseas gold rose 1% on Monday, as a drop in the dollar and sharp gains in crude oil and grains lifted bullion ahead of Tuesday’s French-German meeting to discuss the euro debt crisis. . On Tuesday, international gold traded steady.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
“Demand is not really good as of now due to affordability. There is not much of re-stocking happening at current levels,” said a dealer with a private bank, which imports bullion.
Gold demand from India, the world’s biggest buyer of the yellow metal, will gain pace in coming weeks on the back of wedding and festival demand.
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First Published: Tue, Aug 16 2011. 02 18 PM IST
More Topics: Market | India | Precious | Gold | Commodity |