Mumbai: Gold buying edged up on Thursday, extending a two-session pick-up, as prices steadied in the vicinity of their lowest level in two weeks, though some traders hoped for bigger falls even as the wedding season neared its end.
“I booked for 300 kg from two days, but today there are only a few buyers, a fall to $1,360 (an ounce) could trigger some recovery,” said a dealer with a state-run bullion importing bank.
Gold buying is expected to restart in mid-January, when harvest festivals are slated.
The most-active February gold, was trading 0.01% lower at Rs 20,463 per 10 grams at 1:00pm, following flat overseas leads.
A weak rupee kept the downside in prices limited.
The Indian rupee dropped to its lowest level in nearly three weeks, weighed by broad gains in the dollar versus majors while a choppy local sharemarket provided little direction on foreign fund flows.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
India’s central bank has allowed 7 more banks to import gold and silver, bankers and trade officials said on Monday, a move that will smoothen supply in the world’s largest consumer of the metals.