Mumbai: Gold buying in India, the world’s biggest consumer of bullion, continued its weak trend, after the rupee tumbled 1%, pushing premiums lower, dealers said on Friday.
“We are virtually jobless from 8 October, retail buying is missing... Indian rupee interest rates are high and people prefer to park money in fixed deposits,” said Daman Prakash Rathod, director with Chennai-based MNC Bullion.
Gold on the Multi Commodity Exchange was trading at Rs 29,077 per 10 grams helped by a weaker rupee and global markets. The yellow metal has gained more than 5% since November.
Premiums charged on London prices also fell to $1 per ounce as buying weakened, from last week’s $3 an ounce. Scrap flow continues unabated.
The rupee, which fell 1% on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Weddings season demand will end by last week of December, and halt briefly for three weeks, before re-starting at the end of the month.