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Gold prices up, buyers stay away

Gold prices up, buyers stay away
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First Published: Mon, May 25 2009. 01 47 PM IST
Updated: Mon, May 25 2009. 01 47 PM IST
Mumbai: India gold prices edged higher on Monday, supported by a weak rupee locally, with traders unwilling to take positions due to high prices, dealers said.
The most active June contract was 0.29% higher at Rs14,556 per 10 grams at 1:54pm.
A weak rupee makes the dollar denominated asset expensive.
The Indian rupee halted its six-day rally, following its biggest weekly gain in 13 years, but traders were keenly watching the local share market for cues on fund flows.
“Demand is not coming up due to high prices,” said a dealer with a private bank in Mumbai.
Dealers said gold demand has receded after having picked up for two weeks following better-than expected Akshaya Tritiya sales, an auspicious day to buy gold, as traders replenished stocks for the wedding season.
India’s wedding season will last till June end.
“There are enquiries for lower prices. If dollar/rupee stays where it is and gold comes down to around $935 (an ounce), people would jump to buy,” said another dealer with a state-run bank.
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First Published: Mon, May 25 2009. 01 47 PM IST
More Topics: Commodity | Gold | Gold futures | Rupee | Dollar |