Mumbai: Gold traders in India, the world’s top buyer of the bullion, refrained from buying amid a peak wedding season, thwarted by a huge stock pile and prices that hit a more than four-month high.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was steady at Rs 29,042 at 12:47pm, after hitting a high of Rs 29,087 a level last seen on 13 December, aided by a weaker rupee.
“There are no sales after Akshaya Tritiya... traders are stuck with their old inventory,” said Harshad Ajmera, proprietor of J.J. Gold House in Kolkata.
Gold sales dropped by more than 50% to 10 tonnes for Akshaya Tritiya on Tuesday, and demand has been sluggish since.
A depreciating rupee also dented sales. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
In the overseas market, however, gold struggled to make a headway as the downgrading of Spain’s credit rating fuelled concerns about the debt-stricken euro zone.