Gold extends gains, traders stay away

Gold extends gains, traders stay away

Mumbai: Gold futures extended gains on Monday afternoon to hit their highest level in a week, following overseas markets, though a strong rupee kept the upside in prices limited, and traders were unwilling to book high-priced stocks, dealers said.

At 2:25pm, the most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.60 percent higher at 20,973 per 10 grams, after hitting a high of 20,996, a level last seen on 14 March.

“Secondary gold is available in the market at lower prices, they are available at a discount of 200 (per 10 grams)," said a dealer with a state-rbun bullion importing bank in Mumbai.

The rupee was stronger tracking the euro’s gains against the dollar, but was expected to remain rangebound with high oil prices preventing a sharper rise, traders said.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

The high-demand wedding season is underway in India, the world’s largest consumer of the yellow metal. India’s gold imports in October-December rose 30% to 265 tonne.