Gold recovers partially; traders continue to stock

Gold recovers partially; traders continue to stock

Mumbai: Gold prices recovered partially on Wednesday afternoon following firm overseas markets, though a stronger rupee kept the upside in prices limited, and traders continued to stock up for an upcoming festival slated next week, dealers said.

The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was trading 0.14% higher at 21,914 per 10 grams at 3:00pm, down 1.1% from the record high of 22,172 struck on Monday.

“Yesterday there were sales and deals are continuing till today," said a dealer with a state-run bullion importing bank in Mumbai.

The rupee snapped a three-day losing streak driven by gains in the euro, strong Asian currencies and positive local equities.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

India, the world’s largest consumer of the yellow metal, will celebrate Akshaya Tritiya on 6 May, when demand for bullion tends to go up.

Traders continued to stock silver for the festival and wedding season.

“We are doing silver on a regular basis. We must have imported 5 tonne in the past week," said the dealer.