Mumbai: India gold prices eased due to a strong rupee on Thursday but consumers stayed away, expecting more falls ahead, dealers said.
The most traded June contract was 0.46% lower at Rs14,232 at 1:58pm, after hitting a low of Rs14,171.
A strong rupee makes the dollar denominated asset cheaper. The Indian rupee faltered in a push past 50 per dollar as local shares turned negative, but found support from gains in Asian currencies as traders waited for industrial output data.
“Despite this price fall, demand is not picking up, they want gold to decline to $850 (an ounce),” said a dealer with a state-run bank in Mumbai.
Demand had picked up last week when prices fell to $865 an ounce as traders replenished stocks for the upcoming wedding and festival season demand.
“There wont be much activity as prices are still high,” said a dealer with a private bank.
Weddings will start from mid-April and Akshaya Tritiya, which falls on 27 April, is the second biggest gold-buying festival after Dhanteras in October.