Mumbai: Gold extended losses on Tuesday afternoon, nearing its lowest level in one week, weighed by a stronger rupee, which made the dollar-quoted yellow metal cheaper, and physical buying retreated as traders waited for a further fall in prices, analysts said.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.27% lower at Rs 20,673 per 10 grams at 1:15pm.
“Yesterday evening sales were good at $1,410-1,415 (an ounce). The deals are smaller now,” said a dealer with a state-run, bullion-dealing bank.
“If gold goes below around $1,385, we could see heavy buying,” said the dealer.
The rupee climbed, supported by a pick-up in dollar inflows from corporate borrowings before the financial year ends on Thursday.
The high demand period of when a lot of weddings are scheduled is currently underway in India, which imported a record of a little over 900 tonnes during last year.
Overseas gold traded steady as a violent unrest in the Middle East and a nuclear crisis in Japan supported prices, but implications of a possible end to easy monetary policy in advanced economies weighed on sentiment.