Mumbai: Gold futures were steady on Friday afternoon following overseas markets, though a stronger rupee kept the upside in prices limited, triggering a slight physical offtake, analysts said.
The most-active April gold contract on the Multi Commodity Exchange (MCX) was trading 0.05% higher at Rs 20,856 per 10 grams at 2:42pm.
“There is a little regular demand at lower levels. Yesterday there was demand at $1,425 (an ounce),” said a dealer with a state-run bullion importing bank in Mumbai.
Overseas gold held steady below the previous session’s record highs, as worries over the euro zone’s debt crisis and Middle East turmoil supported sentiment, but prices may face headwind at key technical levels.
The rupee rose for the sixth consecutive session, buoyed by dollar inflows from corporate borrowings and strong domestic shares.
Wedding season is underway in India, the world’s biggest gold consumer, when demand for bullion goes up. India’s gold imports in October-December rose 30% to 265 tonne.