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Gold edges up on weak rupee; traders stay away

Gold edges up on weak rupee; traders stay away
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First Published: Thu, Nov 03 2011. 03 18 PM IST

Updated: Thu, Nov 03 2011. 03 18 PM IST
Mumbai: Gold edged higher bucking the worldwide trend on Thursday afternoon nudged by a weaker rupee, which made the dollar-quoted yellow metal expensive, though physical buying slowed as high prices deterred traders from new positions, dealers said.
The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.15% higher Rs 27,631 per 10 grams.
The rupee fell on heightened worries about foreign fund outflows as investors fled risky assets across markets and on dollar demand from domestic oil companies.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Overseas gold inched lower, tracking the downbeat sentiment in riskier assets as investors remained worried about the euro zone’s debt crisis ahead of a Group of 20 summit.
Wedding season buying is expected to trickle in going ahead in India, the world’s biggest consumer of bullion.
“Demand is again moderate because rates are a little bit high. It may pick up in January,” said a dealer with a state-run bullion importing bank.
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First Published: Thu, Nov 03 2011. 03 18 PM IST
More Topics: Markets | India | Gold | Bullion | Dollar |