Gold traders stay away as prices hit record

Gold traders stay away as prices hit record

Mumbai: Gold traders stayed away from placing new deals on Wednesday afternoon as prices hit another record high, however a strong rupee kept the upside limited, dealers said.

“There are hardly any buyers today due to a new record, there were a few deals due to the rupee, but not much to write home about," said a dealer with a state-run, bullion importing bank.

Gold futures on the Multi Commodity Exchange (MCX) struck a record high of 19,768 rupees, surpassing the previous peak of 19,744 rupees hit on 7 October.

“Heavy buying would be seen at Rs19,000 (rupees)," said Haresh Acharya, head of bullion desk, Parker Agrochem.

October to December is generally the festival season in India and demand will peak on Dhanteras, slated in November, when jewellers register the highest sales every year. Weddings also take place during the festival season.

This has prompted MMTC, the country’s second-largest gold importer, to increase December quarter imports by 37% to 55-60 tonnes.

A strong rupee makes the dollar-quoted yellow metal cheaper for local buyers.