Gold traders stay away on near-record prices

Gold traders stay away on near-record prices

Mumbai: The gold traders kept to the sidelines on Friday as prices stayed near record high in the middle of the wedding season, with a strong rupee seen aiding sentiment later in the session, dealers said.

“Market is very dull, there is no fresh buying happening as prices are still holding near all-time highs," said a dealer with a state-run bank in Mumbai.

The most-traded gold December contract was 0.04% lower at Rs16,589 per 10 grams at 2:36 pm, near its record high of Rs16,677, struck earlier in the week.

“A strong rupee may help later, but prices internationally will have to come down for that," said another dealer with a private bank.

The rupee strengthened to its highest in more than a week on Friday as traders sold dollars on gains in the local sharemarket and watched the US unit’s moves versus majors for direction. A strong rupee makes the dollar-quoted asset cheaper.

Dealers said the underlying demand is still strong on wedding season, that is expected to last till December.

“We have plenty of orders in the range of $1,080-1,085 (an ounce)," said the dealer with the private bank.