Gold extends losses, prompts physical buying

Gold extends losses, prompts physical buying

Mumbai: Local gold extended losses for a second day on Thrusday from their near-record rally tracking overseas markets and a marginally stronger rupee, prompting local traders to stock for the ongoing wedding season in the world’s largest market for bullion.

“There are buyers even today, they are booking in small quantities at $1,370 (an ounce)," said a dealer with a state-run bullion importing bank in Mumbai.

The most-active gold contract was trading 0.18% lower at 20,361 per 10 grams, after losing 0.6% in the previous session. The contract had struck a near-record high of 20,557 rupees in the last session.

International gold edged down in thin trades after the encouraging U.S. jobless claims data calmed some worries about economic growth, but concerns over tensions on the Korean peninsula could offer some support.

Rupee traded marginally stronger, tracking broad dollar losses but a choppy domestic sharemarket and some month-end dollar demand from oil firms limited a further upside.

A strong rupee makes the dollar-quoted yellow metal cheaper for local holders.

India’s gold market is still in the midst of its busy season after the Dhanteras and Diwali festivals earlier this month as many weddings are to take place till December, when demand for the yellow metal tends to go up.

In the quarter to September, India imported 214 tonnes of gold, up 21.6% on year, the WGC said.