Gold extends losses, triggers buying

Gold extends losses, triggers buying

Mumbai: India’s gold physical offtake picked up on Wednesday as prices fell for a fifth day in a row, when a strong dollar overseas weighed on the yellow metal, dealers said.

“Demand has definitely picked up now, but traders are still doing small ticket sizes," said a dealer with a state-run bullion dealing bank in Mumbai.

The most-traded February contract was trading 1.24% lower at Rs17,228 per 10 grams at 3:20pm, after losing more than 4% in the previous four sessions.

The euro fell to a one-month low against the dollar on Wednesday as investors unwound positions in riskier assets ahead of the year-end, prompted in part by rising debt woes for Greece and Dubai.

A strong dollar dims the yellow metal’s appeal as an alternative investment.

Dealers said a slight price correction could spur additional wedding demand.

“I have orders all the way.... some below $1,120 (an ounce) and bulk below $1,100," said another dealer with a state-run bank.