Gold demand retreats; rupee helps

Gold demand retreats; rupee helps

Mumbai: India gold demand retreated on Monday afternoon after a slight pick-up in the previous session as prices edged higher to hit one-week high, but a strong rupee aided sentiment, dealers said.

“Demand is a little less today, but there were deals struck on Friday at $1,140 (an ounce)," said a dealer with a state-run bullion dealing bank in Mumbai.

“There was a problem with supplies last week, but now it has been restored," the dealer said.

International gold, which guides the domestic markets, was trading $1,155.25/1,156.25 an ounce after hitting a one-week high of $1,159.73. Gold last closed at $1,155.90/1,158.90 an ounce.

“We have a few orders in $1,130-1,140 range," said another dealer with a private bank in Mumbai.

Gold hit one-week highs in dollar terms, while euro-denominated gold prices reached an all-time high above 867 euros per ounce as Greece’s debt woes highlighted bullion’s appeal as a safe haven.

The Indian rupee strengthened to its highest in more than a week, riding on gains in shares that could draw in more foreign portfolio investments.

A firm rupee makes the dollar-quoted asset cheaper for local holders.

Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15pm.