Gold buying slows though rupee marginally firm

Gold buying slows though rupee marginally firm

Mumbai: Gold buying slowed on Thursday afternoon as traders refrained from taking fresh positions as wedding season neared an end despite a marginally stronger rupee, dealers said.

“Demand is low and slowly receding, I placed orders for 21 kgs at $1,382/1,383 (an ounce)," said a dealer with a state-run, bullion-importing bank.

Gold contract on the Multi Commodity Exchange (MCX) was trading 0.31% lower at 20,567 per 10 grams at 1:49pm, down over 1 percent from the record high of 20,924.

“Demand is slightly thin, they would hardly come to buy until mid-January," said another dealer with a private bank in Mumbai.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Wedding season in India, the world’s largest consumer of the yellow metal, is nearing an end, and will re-start in the third week of January.

The country accounts for 20% of global demand for gold jewellery.

In July-September, India imported 214 tonnes of gold, up 21.6 percent on year, the World Gold Council said.