Gold edges higher riding festive buying crest

Gold edges higher riding festive buying crest

Mumbai: Gold edged higher on Tuesday, helped by festival buying in the physical markets, although a strong rupee kept the upside in prices limited, dealers said.

The most-active gold for December delivery was 0.26% higher at 26,795 per 10 grams, after hitting a high of 26,849.

India, the world’s biggest consumer of bullion, celebrates a series of festivals this week, when demand for bullion goes up.

“Demand is pretty good... there was good demand across gold and silver from Dhanteras," said a dealer with a state-run bullion importing bank. Indians celebrated Dhanteras on Monday.

The rupee was at 49.6100/6150 per dollar, stronger then its close of 49.8250/8350 on Monday, on positive local shares, steady euro. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Global gold prices held steady, as investors wait for European leaders to work out a strategy to solve the euro zone debt crisis at a meeting on Wednesday, while resilient physical demand from Asia also lent support.