Mumbai: India’s gold buying extended to a fourth day on Thursday, with a limited quantity changing hands, as the rupee surged to its highest level in more than 15 months, making the dollar-quoted yellow metal cheaper, dealers said.
“Some night deals got executed today at around $1,130 (an ounce), we did quiet a few deals at $1,125 yesterday,” said a dealer with a state-run bullion dealing bank in Mumbai.
The Indian rupee surged to its highest level in more than 15 months, buoyed by the dollar’s broad weakness globally and following gains in other regional peers, with further gains expected.
At 2:12pm, international spot gold was trading $1,132.00/1,132.80 an ounce as against 1,137.90/1,138.70 in the previous session.
“People are interested after seeing (record) highs of $1,226.1 (on 3 Dec) ... There is some activity but not like what it was for the last few days,” said a dealer with a private bank.
Dealers expect physical offtake of gold to continue as long as the rupee appreciates.
“We expect January imports to be on the higher side like that of December,” a said state-run bank dealer.
India’s gold imports in December jumped to 32-35 tonnes provisionally from 3 tonnes a year ago, the head of Bombay Bullion Association (BBA) said last week.
“Market may get activated further if prices come down to $1,080-1,120,” said the private bank dealer.