Gold demand retreats as prices near record

Gold demand retreats as prices near record

Mumbai: India gold demand retreated from a pick-up witnessed in the last seven sessions, as prices neared the record high deterring buyers.

Gold prices rose in India tracking a weak rupee, which made the dollar-quoted yellow metal expensive, dealers said.

“Demand is much lesser today as the rupee rate has gone up... yesterday i did about 100 kgs below $1,182 (an ounce)," said a dealer with a state-run bank in Mumbai.

The most-active June contract was trading at Rs18,346 per 10 grams at 2:05pm, after hitting a high of Rs18,391, nearing the previous record of 18,424 struck last week.

“Markets could get re-activated if prices hit Rs17,000 again," said another dealer with a private bank.

The Indian rupee fell to its lowest level in seven months as shares dropped over 2% on a fresh bout of risk aversion which gripped markets globally, while the euro’s losses against the dollar also hurt.