Gold buying cools off as prices hit new high

Gold buying cools off as prices hit new high

Mumbai: India’s physical gold-buying cooled off on Monday after heavy sales in the previous festival week as prices hit a record high, with a weaker rupee making the dollar-denominated yellow metal expensive, dealers said.

“Last week, sales were strong, but this week has started on a quiet note. We are sitting idle from morning," said a dealer from a state-run bullion importing bank.

Gold on the Multi Commodity Exchange (MCX) struck a new record of Rs20,111 per 10 grams, tracking an early rise in the international gold and a weaker rupee.

The rupee weakened, tracking losses in local shares and also weighed down by sharp gains in the dollar against major currencies, especially the euro.

“There are orders downwards at $1,385/1,380," said a dealer with a private bank in Mumbai.

India, the world’s largest consumer of bullion, celebrated its biggest gold-buying festival, Dhanteras, and Diwali last week, and traders said buying would continue on account of weddings.

The sales figures for the festival week haven’t been computed yet, but the World Gold Council expects gold sales in the week to 6 November to rise by upto 40% from 56 tonnes in the year-ago period.