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Gold snaps gaining streak; physical buying muted

Gold snaps gaining streak; physical buying muted
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First Published: Thu, Jun 23 2011. 01 31 PM IST
Updated: Thu, Jun 23 2011. 01 31 PM IST
Mumbai: Gold futures eased a tad on Thursday, snapping a eight-day winning streak, following a weak overseas market, although a weaker rupee kept the downside limited, analysts said.
Physical buyers were still on the sidelines hoping for bigger falls in a seasonally lean demand period.
The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.25% lower at Rs 22,680 per 10 grams, after the yellow metal gained more than a percent in the previous eight sessions.
Overseas gold fell, snapping a four-day winning streak, as the dollar gained after the Federal Reserve gave no hint of further stimulus, but gold priced in sterling hit a record high as the British currency sagged on the possibility of more easing.
The Indian rupee weakened, tracking Asian peers and the euro’s losses against the greenback, but traders expect dollar selling by exporters to limit the losses.
“Business is very dull,” said Daman Prakash Rathod, director with Chennai-based MNC Bullion, adding farmers were concentrating more on sowing operations.
Silver buying also slowed to a trickle as traders were unwilling to deal in the white metal after a 20 percent fall in May.
Imports of silver into India, the world’s biggest buyer, in May tumbled by a third to 200 tonnes from April as buying interest tapered off after prices declined 20 percent, a trade body head told Reuters. See
“Many have gone long at 70,000-74,000 (rupees per kg) and feel crestfallen. They don’t have guts to deal in silver,” said Rathod.
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First Published: Thu, Jun 23 2011. 01 31 PM IST
More Topics: Markets | India | Gold | Commodity | Economy |