Gold buying edges up as rupee supports

Gold buying edges up as rupee supports

Mumbai: Gold buying edged up on Thursday afternoon as traders stocked up for the wedding season, helped by a strong rupee, which made the dollar-quoted yellow metal cheaper, dealers said.

“Market has slowed, some sales are there due to weddings," said a dealer with a state-run bullion importing bank.

The most-active February gold on the Multi Commodity Exchange (MCX) was trading 0.32% higher at 20,689 per 10 grams at 1:30pm, down about a percent from its record high of 20,874 struck on Tuesday.

“There were deals late in the evening when prices began to fall. I covered for 100 kgs at $1,384-1,394 an ounce yesterday," said another dealer with a state-run bullion dealing bank, adding “We covered for about 50 kgs today."

A strong rupee kept the dollar-quoted yellow metal’s price upside restricted, dealers said.

Rupee lost some steam to trade a tad up as oil importers’ dollar demand and dollar shortcovering bouts almost matched the boost given by local share gains and the euro’s gains against the greenback.

India is still in the midst of the wedding season, when demand for gold tends to go up, after strong Dhanteras and Diwali festivals earlier in the month.

In the quarter to September, India imported 214 tonne of gold, up 21.6% on year, the World Gold Council said.