Gold up on rupee; premiums steady in physical market

Gold up on rupee; premiums steady in physical market

The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.15% higher at 29,243 per 10 grams.

Weakness in the rupee, which plays an important role in determining the landed cost the dollar-quoted yellow metal, makes the asset expensive.

The rupee drifted lower after the currency had climbed 2% last week snapping a four-week slide.

Gold prices in the overseas markets traded steady, after posting their sharpest weekly rise in more than a month.

Traders said premiums charged on London prices remained flat at $1-1.25 per ounce on London prices. Weddings will continue till December in India, the world’s biggest buyer of bullion.

“Buying is not really very encouraging," said a dealer with a private bullion importing bank in Mumbai, adding there has not been much change in premium since supply is steady.“

Close