Gold buying ebbs after two days of pick-up

Gold buying ebbs after two days of pick-up

Mumbai: Gold buying retreated on Friday afternoon after picking up for two straight sessions, as traders sought better bargains to stock up for the wedding season, dealers said.

“I have booked for less than 10 kgs today. For deals to happen, either rupee must appreciate to 44.90, or gold must fall below $1,380 (an ounce)," said a dealer with a state-run bullion importing bank in Mumbai.

International gold held steady in choppy trade as a dollar rally took a breather, and uncertainty over Europe’s fiscal health continued to attract investors to bullion.

International spot gold was trading at $1,391.45/1,392.20 an ounce as against the previous day’s close of $1,387.39/1,388.20.

The rupee, which rose due to mild gains in the euro and positive shares, plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

The wedding season that follows Dhanteras and Diwali festivals is underway in India and will continue till end-December, sustaining the demand for the yellow metal. The country accounts for 20% of global demand for gold jewellery.

In July-September, India imported 214 tonnes of gold, up 21.6% on year, the World Gold Council said.