Gold edges up after previous day’s 3% fall

Gold edges up after previous day’s 3% fall

Mumbai: Gold futures edged higher on Tuesday afternoon, partly reversing the previous day’s more than 3% loss, as physical buyers came in to stock at lower levels, dealers said.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.31% higher at 26,816 per 10 grams at 1:07pm.

“There is good demand as prices have come down below $1,800 (an ounce)," said a dealer with a state-run bullion importing bank in Mumbai, adding premiums were steady at $1.5-2 an ounce over London prices.

Overseas gold regained strength as bargain hunting resurfaced after prices dropped more than 2 percent in the previous session, but higher equities and easing worries about recession in the United States could limit gains.

The rupee rose for a second straight session in tandem with gains in domestic equities and the euro. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

India’s wedding and festival season demand will gain pace and peak in October before tapering off in December.