Gold demand remains weak for sixth session

Gold demand remains weak for sixth session

Mumbai: India gold demand dwindled for a sixth straight session on Friday as prices traded near their record highs and a weaker rupee made the dollar-quoted asset expensive, dealers said.

“The demand is nil... it’s been a similar condition since many days, I have booked shipments only for a tonne since May, which is a bad figure given the festival," said a dealer with a state-run bullion dealing bank.

“I have advanced orders at about $1,170 (an ounce)," said another dealer with a private bank.

The Akshaya Tritiya festival, which falls on 16 May, is one of the two most auspicious days of the year to buy the yellow metal as Hindus believe they can get lasting prosperity by buying precious metals on the day.

Gold futures on the Multi Commodity Exchange (MCX) was trading 0.51% higher at Rs17,854 per 10 grams, after hitting a high of Rs17,908. The last record high was struck at Rs18,294 on 3 December last year.

A weaker rupee also weighed on sentiment, they added.

The Indian rupee dropped to over two month lows weighed by weak domestic shares and traders were watching the dollar’s moves against major currencies for further direction.