Mumbai: India’s gold buying continued for the second day on Tuesday as a strong rupee made the dollar-quoted yellow metal cheaper for domestic traders, dealers said.
“There is a little bit of buying interest as the rupee is in support,” said a dealer with a state-run bank in Mumbai.
The Indian rupee rose to new one-month highs boosted by gains in shares and higher Asian currencies but demand for US dollar from oil firms and importers limited gains.
At 2:49pm, international spot gold was trading at $1,126.50/1,127.05 an ounce as against 1,121/1,121.80 in the previous session, extending the previous day’s 2% rise.
“People are waiting for some downtick... we could see some interest at $1,100,” said the state-run bank dealer.
“We have orders below 1100 levels,” said another dealer with a private bank.
Meanwhile, India imported 300-350 tonnes of gold in 2009, higher than the previous estimate of a little over 200 tonnes, the head of the Bombay Bullion Association said on Monday.