Gold buying continues apace; firm rupee helps

Gold buying continues apace; firm rupee helps

Mumbai: Gold traders hunted for bargains to stock up for the ongoing wedding season on Thursday afternoon, after a more than a percent drop in the previous session, dealers said.

“I filled overnight orders at $1,382-$1,388 levels; they were all wedding buyers," said a dealer with a state-run bullion importing bank in Mumbai.

Gold on the Multi Commodity Exchange (MCX) was trading at 20,321 per 10 grams, still down 1.2% from the all-time high of 20,569 hit on Tuesday.

A stronger rupee kept the upside in prices limited. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

International gold was trading at $1,408.45/1,409.20 as against the previous close of $1,402.7/1,403.70 an ounce on Thursday.

“I have advanced orders at below $1,383," said another dealer with a private bank in Mumbai.

Traders expect gold buying in India, which gained momentum despite higher prices during last week’s Dhanteras and Diwali festivals, to continue on account of wedding.

The World Gold Council expects gold sales in the week to 6 November to rise by up to 40% from 56 tonne in the year-ago period. The sales figures for the festival week haven’t been computed yet.