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Gold demand weak as prices extend gains

Gold demand weak as prices extend gains
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First Published: Mon, May 23 2011. 04 09 PM IST
Updated: Mon, May 23 2011. 04 09 PM IST
Mumbai: Gold futures on Monday extended the previous week’s gains, bolstered by the weak rupee and gains overseas, hammering demand in the local spot market, dealers said.
At 3:38pm, the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.35% higher at Rs 22,245 per 10 grams.
“Today demand was almost nil. People were not interested in buying at current level. They may enter into the market if prices fall by significant amount,” said Ashok Jain, a Mumbai-based jeweler and a director at Bombay Bullion Association. Wedding season demand wasn’t there in the market, he said.
Investors ditched the euro and turned to gold after Fitch cut Greece’s debt ratings by three notches, pushing the country deeper into junk, while silver struggled to catch up with gains in bullion.
The rupee, which has a bearing on the landed cost of dollar-quoted gold, weakened further in afternoon trades on Monday pressured by the euro’s continuing slide, weak Asian currencies and local shares.
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First Published: Mon, May 23 2011. 04 09 PM IST
More Topics: India | Gold | Commodity | Bullion | Dollar |