Mumbai: Gold fell by more than 1% from the previous day’s all-time high on Friday, weighed by a strong rupee, prompting physical traders to pick bargains, though many waited for greater falls for bigger deals.
“There is buying today, I placed orders for 100 kg at $1,406/1,408 (an ounce),” said a dealer with state-run bullion importing bank, adding “there could be buying if prices fall to $1,387/1,401.”
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 1.14% lower at Rs20,856 per 10 grams at 3:26 pm, easing from the previous session’s record high of Rs21,157.
The rupee was stronger on Friday afternoon, recovering further from an over 1-week low hit in the previous session, drawing comfort from strong regional peers.
Harvesting and wedding season is underway in India, the world’s largest conumer of the yellow metal, when demand for bullion goes up.
India’s gold imports in October-December rose 30% to 265 tonnes, and an increase in import duty is likely in the upcoming budget, the World Gold Council said on 17 February.