Gold nears record high; traders stay away

Gold nears record high; traders stay away

Mumbai: Gold traded near its record high on Monday afternoon tracking overseas markets, and dealers said traders were reluctant in striking new deals at the all-time high prices.

“At these record prices, who’ll buy," said a dealer with a state-run bullion importing bank in Mumbai, adding “rupee is helping some traders, I booked only 25 kgs from morning at $1,416 (an ounce)."

The most-active February gold contract hit a near-record high of 20,865, nearing the previous record level of 20,874 struck on 30 November.

However, the rupee’s rise to a fresh three-week high kept the upside in local gold prices limited, they added.

The rupee extended its rally to a fifth straight session, rising to fresh three-week highs, boosted by gains in most other Asian currencies and a firm start to the domestic sharemarket. [INR/]

India is still in the midst of the wedding season, when demand for gold tends to go up, after strong Dhanteras and Diwali festivals earlier in the month.

In the quarter to September, India imported 214 tonnes of gold, up 21.6% on year, the World Gold Council said.