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Gold down 1% on recovering rupee; silver down 3%

Gold down 1% on recovering rupee; silver down 3%
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First Published: Wed, Nov 23 2011. 04 10 PM IST

Updated: Wed, Nov 23 2011. 04 10 PM IST
Mumbai: A recovery of the rupee from its all-time low weighed on gold and silver futures in India on Wednesday, though physical traders deterred from fresh purchases waiting for further price weakness.
The most-traded gold for December delivery on the Multi Commodity Exchange (MCX) was down 1.01% at Rs28,566 per 10 grams, after falling to Rs28,508 earlier in the day.
The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, bounced more than 1% on Wednesday, a day after the currency had slumped to an all-time low.
Silver retreated from previous session’s gains and declined more than 3% to trade at Rs55,332 per kg.
Physical traders, seeking to stock for wedding season, preferred to remain on the sidelines.
“We are unable to sell even 200 kg this time of the year against 2 tonnes last year.... People are not coming forward despite a fall of $150 (an ounce) in prices,” said Harsh Acharya, head of bullion desk, Parker Bullion.
The recent weakness in the rupee has limited the downside in gold, he added.
India, the world’s biggest buyer of bullion, is in the middle of the wedding season, when demand for the yellow metal peaks. The season will end in December.
India gold demand, which recorded a fall of 20% in the September quarter, could rise in the last quarter and surpass the 1,000 tonnes demand mark in 2011, according to the World Gold Council figures.
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First Published: Wed, Nov 23 2011. 04 10 PM IST
More Topics: Gold | Bullion | Silver | Markets | Commodity |