Mumbai: Gold edged lower on Tuesday afternoon following weak overseas leads, though a weaker rupee kept the lid on prices, with traders awaiting bigger falls to stock up for wedding season, analysts said.
“There have been no deals despite a $10 fall in prices,” said a dealer with a state-run, bullion-importing bank. “Most of the deals are below $1,410.”
The most-active April gold on the Multi Commodity Exchange was trading 0.44% lower at Rs 20,906 per 10 grams at 2:10pm, after hitting a low of Rs 20,876.
Overseas gold, which guides the domestic market, slid more than 1% as declines in stock markets triggered by a growing nuclear crisis in Japan prompted speculators to sell bullion to cover losses.
The rupee plays an important role in determining the landed cost of the yellow metal quoted in dollars.
The Indian rupee fell to its lowest in more than two weeks as worries about the economic impact of Japan’s earthquake on growth and demand dragged local shares, with weak Asian currencies also weighing.
The high-demand wedding season is underway in India, the world’s largest consumer of the yellow metal. India’s gold imports in October-December rose 30% to 265 tonnes.