Mumbai: Gold held steady on Friday afternoon following overseas markets, and a stronger rupee kept the gains in check, with traders awaiting further falls in prices to book deals, ahead of an important US job report.
The most-active April contract on the Multi Commodity Exchange (MCX) was trading 0.11% higher at Rs 20,881 per 10 grams, after hitting a high of Rs 20,918 earlier.
Overseas spot gold steadied on Friday, pausing after a drop of more than 1% in the previous session, as investors awaited a key US job market report to assess the health of the world’s top economy.
The rupee held on to most of the intrday gains in afternoon trades on Friday, drawing strength from its strong regional peers and a rise in domestic shares.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
“There are a few deals, I covered for 50 kgs from morning,” said a dealer with a state-run bullion importing bank in Mumbai.
The high-demand wedding seasons is underway in India, the world’s largest conumer of the yellow metal.
India’s gold imports in October-December rose 30% to 265 tonne, and an increase in import duty is likely in the upcoming budget, the World Gold Council said on 17 February.