Gold extends losses; traders pick bargains

Gold extends losses; traders pick bargains

Mumbai: India’s gold futures extended losses for the second consecutive day on Thursday, triggering bargain buying from physical traders, dealers said.

A stronger rupee also weighed on prices, they added.

“There was buying yesterday and it’s continuing today, I did about 200 kgs from yesterday mostly at around $1,250 (an ounce)," said a dealer with a state-run bank in Mumbai, which deals in bullion. “Appreciating rupee is helping."

Gold on Multi Commodity Exchange (MCX) was trading at Rs19,083, down about 0.64% from its all-time high of Rs19,211 struck on Tuesday. The contract had shed 0.3% on Wednesday.

The Indian rupee rose tracking strong Asian peers and firmer local shares, but demand for dollars from importers kept gains in check.

A strong rupee makes the dollar-denominated commodity cheaper.

“All traders want to prepare for festivals, so even a 300-rupee fall would increase purchases," said another dealer with a private bank.

Traditionally, demand for gold in India, the world’s largest consumer of bullion, is high during the September-November festival season. Dhanteras, considered auspicious day for buying gold, falls in November.

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