Mumbai: India gold slipped from its morning high on Wednesday as investors chose to take profits after a rally that took it to a more than two months high triggered by safe haven buying, but traders hoped for bigger falls to stock up for weddings, dealers said.
The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.08 percent lower at Rs 28,757 per 10 grams, reversing from an earlier high of Rs 28,830, a level last seen on 6 September.
Physical buying stayed weak as prices were still in the vicinity of the 2-month high, and traders waited for better bargains.
“Buying is poor as prices are still high... any correction in price will see buying from India re-emerge,” said a dealer with a private, bullion-importing bank in Mumbai.
The wedding season -- traditionally a time of strong demand for gold -- will continue into December in India, the world’s biggest buyer of bullion.
Firm global leads and a weaker rupee kept the downside in prices limited, dealers said.
The rupee fell to its lowest in more than two weeks on Wednesday after a large company bought dollars, while choppy shares provided little comfort.
Global gold inched up on fears the euro zone debt crisis could engulf Italy, despite news that Prime Minister Silvio Berlusconi would resign, which was initially seen as clearing the way for a new leader to act more aggressively to tackle the country’s debt problems.
Berlusconi said he would leave office after parliament approved a budget law that included reforms demanded by Europe as Italy’s failure to fix its debt problems would have a far bigger impact on the euro zone than difficulties in Greece.