Gold traders stock up as rupee strengthens

Gold traders stock up as rupee strengthens

Mumbai: India gold traders moved in to stock up for the upcoming festivals on Monday afternoon as the rupee, which hit its three-month peak, made the dollar-quoted yellow metal cheaper for local buyers, dealers said.

Gold on the Multi Commodity Exchange (MCX) traded 0.22% lower at Rs19,108 per 10 grams at 1:02pm, just 0.7% lower than the all-time record of Rs19,257 struck on 15 September.

“There is festive buying. I did about 50 kgs from morning, and hope to do more. Plenty of orders are there at $1,278/1,271 an ounce and downwards," said a dealer with a state-run, bullion-dealing bank in Mumbai.

The Indian rupee strengthened to a fresh three-month high on dollar sales by banks after the US unit fell slightly in the offshore non-deliverable forwards markets and also boosted by local share gains.

India, the world’s biggest buyer of gold, is in the middle of the festive season that will peak with Dhanteras in November, the single biggest gold buying day.