Gold buying weak; traders seek better prices

Gold buying weak; traders seek better prices

Mumbai: Gold buying was weak as traders stayed away from placing new deals on Monday afternoon in the middle of the wedding season, seeking better prices, dealers said.

“They are all in a wait-and-watch mode. I have plenty of advanced deals below 20,000 rupees," said a dealer with a state-run bullion dealing bank.

Gold on the Multi Commodity Exchange (MCX) was trading 0.1% higher at 20,313 per 10 grams at 1:11pm, not far off from the all-time high of 20,569 hit in early November.

Though a strong rupee kept the price upside restricted. The rupee plays an important role in determining the landed cost of the yellow metal.

India’s gold market is still in the midst of its busy season, after the Dhanteras and Diwali festivals earlier, as many weddings are to take place till December, when demand for the yellow metal tends to go up.

In the quarter to September, India imported 214 tonnes of gold, up 21.6% on year, the WGC said.