Gold buying continues as prices hit 3-month low

Gold buying continues as prices hit 3-month low

Mumbai: India’s gold buying continued on Friday afternoon, with limited quantities changing hands as prices hit a fresh three-month low, dealers said.

“Demand is still coming in but not in big lots as it did yesterday. We must have sold 300-400 kgs yesterday and most of the orders got triggered at $1,060-1,075 (an ounce)," said a dealer with a state-run bank in Mumbai.

Demand has slowly picked up from late Thrusday evening, dealers said.

International gold was trading at $1,054.70/1,055.70 an ounce, after hitting an intra-day low of $1,050.50, the lowest level since 2 November.

“I have orders in lots of 10 kgs and 40 kgs in between $1,045-1,050 (an ounce)," said another dealer with a private bank.

However, a weaker rupee, which makes the dollar-quoted asset expensive, weighed on sentiment, dealers added.

The Indian rupee weakened on the back of a strong dollar overseas and losses in domestic equities market.

India has imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said.