Gold buying resurfaces as prices steady near 2-week low

Gold buying resurfaces as prices steady near 2-week low

Mumbai: Gold buying resurfaced on Wednesday afternoon as prices steadied near their lowest level in two weeks offsetting a weaker rupee even as the wedding season drew to a close in the world’s largest consumer of the yellow metal, dealers said.

“There is renewed enthusiasm in market after markets crashed by $40 yesterday, I booked deals for 200 kgs from yesterday evening from $1,417 and below," said a dealer with a state-run bank in Mumbai.

The most-active gold for February delivery on the Multi Commodity Exchange was trading 0.15% higher at 20,480 per 10 grams at 1:27pm, drawing away from a two-week low of 20,423 struck in the previous session, a level last seen on 23 December.

International spot gold steadied from a more than two% fall in the previous session, as bargain hunting on the physical market lent support and helped offset a stronger dollar.

Gold buying is expected to restart in mid-January, when harvest festivals are slated.

Traders were undeterred by a weaker rupee, which made the dollar-quoted yellow metal expensive.

The rupee dropped to its lowest level in more than a week as the dollar climbed broadly against major currencies and Asian peers, while a shaky shares added to the downbeat mood.

Reserve Bank of India has allowed 7 more banks to import gold and silver, bankers and trade officials said on Monday, a move that will smoothen supply in the world’s largest consumer of the metals.