Gold demand stays weak as prices jump

Gold demand stays weak as prices jump

Mumbai: India gold demand remained weak for a second day on Wednesday as prices traded above the most-watched Rs17,000-mark after an overnight jump, but a strong rupee, which made the dollar-quoted asset cheaper, aided sentiment.

“Thin trade is continuing even today as prices are on the higher side, last week we saw some good deals," said a dealer with a state-run bank in Mumbai.

The most-active April gold contract on the Multi Commodity Exchange (MCX) was trading 0.03% higher at Rs17,025 per 10 grams, after gaining over 1% in the last session.

International spot gold, which guides the domestic market, was trading $1,136.00/1,116.80 an ounce as against the previous close of $1,134.50/1,135.30 an ounce.

“Last week, demand was decent at $1,100, we have orders in the range of $1,110-1,115," said another state-run bank dealer.

The Indian rupee continued to trade close to its highest level in six weeks on Wednesday afternoon as broad weakness in the dollar versus majors and gains in domestic shares cheered sentiment.