Gold extends losses, nears over 1-week low

Gold extends losses, nears over 1-week low

Mumbai: Gold futures extended losses and stayed near the lowest level in more than a week, due to a stronger rupee that made the dollar-quoted yellow metal cheaper, dealers said.

The rupee strengthened, supported by local share gains on strong quarterly earnings and hopes of foreign fund inflows, but dollar demand for gold buying is seen limiting the rise.

Investors awaited clarity on Europe’s plans to tackle the debt crisis at this weekend’s European Union summit.

France and Germany were reported to have reached an agreement to boost a euro zone financial rescue fund to €2 trillion ($2.76 trillion), as European leaders have been pressured to come up with a definitive solution to the debt crisis at the meeting this weekend.

Gold traders in India, the world’s biggest consumer of bullion, continued to hunt for bargains and stock for a slew of festivals slated later in the month, as prices stayed in the vicinity of the lowest level in more than a week.

“Demand is good, and expectations are that we might see better retail sales on hopes of higher returns," said Harshad Ajmera, proprietor with Kolkata-based JJ Gold House, adding that he expects a 20% jump in sales from a year earlier.