Gold buying edges up; rupee weighs

Gold buying edges up; rupee weighs

Mumbai: Gold buying edged higher on Thursday morning as prices traded near 20,000 rupees, though a weaker rupee made the dollar-quoted yellow metal expensive, dealers said.

“Deals are there in between $1,348-1,352.50 (an ounce)," said a dealer with a state-run bullion importing bank.

Gold on the Multi Commodity Exchange (MCX) was at Rs20,084 per 10 grams. Its all-time high is Rs20,569 hit on 9 November.

International gold was at $1,354.20/1,357.70 an ounce. “I have a few orders below $1,349," said another dealer with a private bank.

The rupee weakened further to touch near two-month lows on losses in local shares amid profit-taking by foreign funds ahead of the year-end, with dollar demand from oil importers also weighing.

Traders expect gold buying in India, which gained momentum despite higher prices during Dhanteras and Diwali festivals, to continue on account of the wedding season which is on till December.

In the quarter to September, India, the world’s largest consumer of bullion, imported 214 tonnes, up 21.6% from the same period last year, the World Gold Council said.