Gold flat as weaker rupee offsets global leads

Gold flat as weaker rupee offsets global leads

Mumbai: Gold futures were flat as support from a weaker rupee, which was within sight of its record low, was offset by weak global leads, and physical traders booked positions to take advantage of recent price fall from record, and also sought price leads.

The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, skidded for a fifth consecutive session to within sight of its record low of 52.20 against the dollar.

Physical traders, who were on the sidelines, returned to the market as prices fell more than 1.5% from its record high of 29,212 rupees struck last week.

There is good physical interest at around $1,710-1,715 (an ounce), as the level is technically supported, said a dealer with a private bullion importing bank in Mumbai.

Wedding season is currently underway in India, the world’s biggest buyer of bullion.

India gold demand, which recorded a fall of 20% in the September quarter, could rise in the last quarter and surpass the 1,000 tonnes demand mark in 2011, according to the World Gold Council figures.