Strong rupee nudges up India’s gold demand

Strong rupee nudges up India’s gold demand

Mumbai: India’s gold demand picked up slightly on Thursday as the rupee appreciated against the dollar easing the import-driven metal’s price, but a majority of the buyers waited for further falls, dealers said.

“There was some small interest this morning," said one dealer in a large private bank, “But nothing now."

The rupee, at a 9-year high against the dollar in the wake of a cut in US interest rates, raised expectations of further falls in the price of gold, dealers said.

Overseas gold was up and seemed to aim at its 26-year high of $730 an ounce set last year in May, but traders and retailers said they believed it was overbought, and may head down.

“Nobody is fixing prices yet," said Rahul Gupta, director of PP Jewellers in New Delhi, referring to his wholesale clients.

Gupta said his clients were waiting for a fall to 9,200 per 10 grams levels.

India’s busy season is now on, but will be interrupted by an inauspicious phase from September 27 to October 11, when weddings are not usually scheduled.

Yet, if prices are right, buyers would book gold to take deliveries later, most dealers said.

Following was the price of .995 gold in the spot market in rupees per 10 grams at 1:15 p.m.