Mumbai: Gold hit a record high on Wednesday, keeping traders away from placing fresh deals in the middle of the wedding season, dealers said.
“Sales have been nil so far as it is a new high, there were a few deals yesterday,” said a dealer with a state-run bullion dealing bank.
Gold on the Multi Commodity Exchange (MCX) was trading at Rs 20,590 per 10 grams at 1:01pm, after hitting a record high of Rs20,625 earlier in the session.
“We could see heavy sales if prices come down to Rs 20,000,” said another dealer with a private bullion importing bank. However, a strong rupee kept the upside in local prices limited, they added.
The Indian rupee strengthened further, tracking gains in Asian units and local shares, and supported by dollar inflows from a large telecom company towards tax payment.
India is still in the midst of the wedding season, when demand for gold tends to go up, after strong Dhanteras and Diwali festivals last month, also major gold sales days in the world’s biggest consuming country.