Mumbai: Gold eased a tad from its highest level in seven weeks on Wednesday weighed by a stronger rupee, leaving traders unenthused as they waited for bigger falls to stock up for the wedding season demand, dealers said.
“There are a few orders. I have priced in for 25 kgs below $1,400 (an ounce),” said a dealer with a state-run, bullion importing bank in Mumbai.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.14% lower at Rs 20,757 per 10 grams at 2:35pm, easing from the previous day’s seven-week high of Rs 20,849, a level last seen in early January.
Traders and dealers said buying appetite could resurface if prices decline below the keenly-watched $1,400 an ounce level.
The rupee extended gains tracking a firm euro and a rise in other regional currencies, however a choppy domestic sharemarket prevented further sharp gains.
Harvesting and wedding season is underway in India, the world’s largest conumer of the yellow metal, when demand for bullion goes up.
Gold imports in October-December rose 30% to 265 tonnes, and an increase in import duty is likely in the upcoming budget, the World Gold Council said on 17 February.