Gold buying continues; rupee weighs

Gold buying continues; rupee weighs

Mumbai: India’s gold traders continued with their purchases on Thursday afternoon as prices stayed near their two-week lows, but a weaker rupee weighed on sentiment, dealers said.

“I did about 200-300 kgs yesterday at $1,108-1,120 (an ounce) as markets came to the much awaited levels. Even today there is activity, unfortunately rupee is not in supportive mode," said a dealer with a private bank in Mumbai.

International gold was $1,109.55/1,110.35 an ounce as against the previous close of $1,111.10/1,111.90. Overseas gold struck a two-week low of $1,107 an ounce, a level last seen on 4 January.

“Yesterday’s sales were highest in the month. There were deals till late night," said another dealer with a state-run bank.

The Indian rupee retreated a bit from new two-week lows touched in initial trade as exporters stepped up dollar sales around the psychological Rs46-per-dollar mark while the U.S. unit stayed steady at morning levels.

A weak rupee makes the dollar-quoted yellow metal expensive.