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Gold steady; physical demand remains weak

Gold steady; physical demand remains weak
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First Published: Mon, May 16 2011. 03 18 PM IST
Updated: Mon, May 16 2011. 03 18 PM IST
Mumbai: India’s gold futures were treading water on Monday afternoon as the overseas market was steady amid a fall in the Indian rupee, and local demand was weak as buyers awaited a price fall, jewellers and analysts said.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.25% higher at Rs 22,016 per 10 grams at 2:43pm.
“There wasn’t any change in buyers’ perception. They were waiting for a correction in prices,” said Ghanshyam Nichani of Dhanraj Jewellers based in Mumbai. “Wedding season wasn’t enough to lift demand.”
The wedding season will continue through May in India, the world’s largest consumer of bullion.
* Overseas gold steadied on Monday, as the twin forces of deepening concern about the euro zone debt crisis and the growing strength of the dollar offset each other, while investors kept silver pinned near last week’s 2-1/2 month lows.
The rupee slid to its lowest in more than 8 weeks on Monday as weakness in domestic shares as well as the euro dampened sentiment for the local unit. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
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First Published: Mon, May 16 2011. 03 18 PM IST
More Topics: India | Markets | Gold | Commodity | Rupee Dollar |