Mumbai: India’s local gold buying stayed weak as the rupee dropped in early trade, making the dollar-quoted asset expensive, but traders awaited lower levels to replenish stocks for festivals, dealers said.
“There were enquires below $940 (an ounce), but they are not ready to buy. A weak rupee is driving them (traders) away,” said Pinakin Vyas, chief manager-treasury with IndusInd Bank in Mumbai.
The Indian rupee gave up early gains and fell in early trade as increased talk China may tighten banks’ capital requirements weighed on regional units.
The most-active October gold contract was 0.14% lower at Rs14,876 per 10 grams at 2:52pm.
“I have some advanced orders at $930-935 an ounce,” said a dealer with a state-run bank.
The world’s largest consumer of the yellow metal will celebrate Ganesh Chathurthi on Sunday.