Mumbai: Gold reversed early losses to trade a tad higher on Friday evening on a weaker rupee, though sluggish overseas markets kept the upside limited. Physical traders sought declines in prices to book the yellow metal.
The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.33 percent higher at Rs 29,414 per 10 grams. The contract struck a record of Rs 30,295 on 6 June.
The rupee, which eased on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Global gold fell to a one-week low, extending losses from the previous day when the US Federal Reserve gave no hint of plans for imminent stimulus.
Gold sales have fallen by 70% compared to last year, said Haresh Acharya, head of the bullion desk at wholesaler Parker Bullion in Ahmedabad, adding, “demand would remain slow.”
Gold demand is likely to remain sluggish in coming months due to the onset of monsoon rains and a relatively inactive season for weddings and festivals. High prices also attract scrap in the domestic market.