Mumbai: Gold snapped its four-day gaining streak on Thursday afternoon, following overseas leads, but buying retreated as traders hoped for greater falls to stock up for the upcoming wedding demand, even as premiums stayed on the higher side, dealers said.
“There are a few deals, but traders are not getting benefit due to a weaker rupee,” said a dealer with a private bullion importing bank in Mumbai.
The most-active February contract on the Multi Commodity Exchange (MCX) was trading 0.40% lower at Rs 20,314 per 10 grams at 1:48pm, breaking a four-day gaining streak. The contract had gained 0.8% in the previous four sessions.
A weaker rupee kept the downside in prices limited, dealers said.
“Premiums are still on the side, they want $1.5 (an ounce),” said another dealer with the state-run bank in Mumbai.
The winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.
The wedding season starts in February.
In India, which accounts for 20% of global demand for jewellery, gold is widely gifted in religious celebrations and weddings.