Gold demand abates as prices recover

Gold demand abates as prices recover

Mumbai: India’s physical gold demand abated on Tuesday after picking up in the last session as prices recovered from a one-week low, and a weaker rupee weighed on sentiment, dealers said.

“I did some bookings yesterday... but my clients are telling me that today that no one is asking for even a kilo from them due to recovery in prices," said a dealer with a private bullion dealing bank.

The most-traded February contract was 0.17% higher at Rs17,577 per 10 grams at 2:01pm, helped by a weaker rupee, recovering from the previous day’s one-week low of Rs17,210.

The Indian rupee fell after a firmer start as oil refiners bought dollars, following the US unit’s rise the previous day.

A weaker rupee makes the dollar-quoted asset expensive.

Dealers say their sales have been good so far this month and have a positive outlook for December.

“We must have booked at least 0.5 tonnes since December and this month is expected to be good in terms of sales," said a dealer with a state-run bank in Mumbai.