Mumbai: India gold futures eased a tad from a 2-week high, weighed by a stronger Indian rupee, but the losses were not enough to attract physical players seeking to stock up for the wedding season, dealers said on Thursday.
At 1:34pm, the most-active December gold on the Multi Commodity Exchange (MCX) was 0.25% lower at 28,989 rupees per 10 grams, retreating from the previous session’s two week high of Rs 29,186, a level last seen on 16 November.
The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, surged to a near two-week high on Thursday. A stronger rupee makes the yellow metal cheaper.
Physical traders were unwilling to get stuck with high priced stocks and waited for a price dip. Premiums charged on London prices stayed steady at $1-1.2 an ounce.
“Demand is okay... premiums seem steady,” said a dealer with a private, bullion-importing bank in Mumbai.
Wedding season will peak this month in India, the world’s biggest buyer of bullion.
Silver futures traded lower on Thursday following overseas markets. The most-traded December silver on the MCX was down 0.40% at Rs 55,300 per kg.