Gold nears 1-week high; traders stay away

Gold nears 1-week high; traders stay away

Mumbai: Gold extended gains for a third consecutive day on Tuesday tracking overseas leads. Traders, however, stayed away from booking fresh deals hoping for price falls and also seeking clear direction from the rupee.

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

“Everyone is in holiday mood now, no one wants to place deals," said a dealer with a state-run bullion dealing bank in Mumbai.

The most-active February on the Multi Commodity Exchange (MCX) was trading 0.31% higher at Rs20,575 per 10 grams, after hitting a high of Rs20,600, a level last seen on 22 December.

The contract had gained 0.36% in the previous two sessions.

International spot gold prices firmed as it was supported by a weaker dollar and buying interest in Asia, while investors hoped for a further rally in the prices next year.

The Indian rupee was trading marginally higher in lacklustre trade on Tuesday as positive sentiment due to sharp dollar losses overseas was offset by choppy local shares and month-end dollar demand from oil firms.

India’s gold buying is expected to restart in mid-January, when harvesting festivals are slated.

Following were the prices being quoted by Scotia Mocatta in rupees in the spot market at 1:15 pm.