Mumbai: Gold futures eased on Thursday on a strong rupee and tailing losses in the overseas market, but the drop wasn’t enough to lift local spot demand, which has been subdued for the past two days, dealers said.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.39% lower at Rs 21,893 per 10 grams at 4:22pm.
“Jewellers were not buying. They have secured enough supplies to cater to their demand in short-term. For the past two days demand was weak,” said a Mumbai-based dealer with a state-run bank dealing in bullion. Wedding season in India, the world’s largest consumer of bullion, will continue through May.
International gold prices eased in Europe on Thursday as the euro surrendered early gains to soften against the dollar and oil prices retreated, but trade was muted as investors awaited firmer direction from the currency markets.
At 4:22pm, the partially convertible rupee was at 45.97 per dollar, compared to Wednesday’s close of 45.055/065. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.