Mumbai: Gold’s physical offtake abated on Monday as prices extended gains to cross the Rs17,000 mark to hit a three-week high, after spot demand picked-up for five sessions in a row, dealers said.
“Demand is less now as prices have moved above Rs17,000. Last week ended on a good note with sales of about a tonne,” said a dealer with a state-run bullion dealing bank in Mumbai.
The most-traded gold February contract on the Multi Commodity Exchange (MCX) was trading 0.89% higher at Rs17,051 per 10 grams at 2:44 pm. It hit an intra-day high of Rs17,054, a level last seen on 21 December.
“We could see good demand at around (Rs)16,700/16,800,” said a dealer with a private bank in Mumbai.
However, a strong rupee, which makes the dollar-quoted yellow metal cheaper, aided sentiment, they added.
The rupee rose to its strongest level in more than 15 months following broad weakness in the US dollar after disappointing jobs data and helped by early gains in shares, which raised hopes for more foreign inflows.
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 4 January.