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Gold edges higher; physical buying weak

Gold edges higher; physical buying weak
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First Published: Tue, Aug 02 2011. 03 13 PM IST
Updated: Tue, Aug 02 2011. 03 13 PM IST
Mumbai: Gold futures edged higher on Tuesday morning following overseas markets and a weaker rupee, which made the dollar-quoted yellow metal expensive, pushing physical traders to the sidelines, dealers said.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.25% higher at Rs 23,566 per 10 grams.
“The physical buying is very slow,” said a dealer with a bullion importing foreign bank in Mumbai.
Overseas gold edged higher, supported by a purchase of 25 tonne of the precious metal by South Korea’s central bank, while investors watched the outcome of a vote on the US debt deal.
The rupee weakened a tad more as local equities slipped further and dollar buying for Iran oil payment persisted.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Retail gold demand is expected to gain pace in August, when the festival and wedding seasons start in the world’s biggest consumer of bullion.
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First Published: Tue, Aug 02 2011. 03 13 PM IST
More Topics: Markets | India | Gold | Commodity | Bullion |