Gold demand stays weak as rupee weakens

Gold demand stays weak as rupee weakens

Mumbai: India gold demand stayed weak on Thursday afternoon as a weaker rupee made the dollar-priced yellow metal expensive, even as traders eye the wedding season which begins next week.

“I haven’t struck any deals since morning as the rupee is not acting in support, the weakness started yesterday evening, when prices displayed huge volatility," said a dealer with a state-run bank in Mumbai.

International gold, which guides the domestic market, was trading $1,176.75/1,177.75 an ounce as against the previous close of $1,174.20/1,176.20.

“I have some orders at $1,150-1,159," said another dealer with a private-run bullion dealing bank.

The Indian rupee dropped to its lowest level in six weeks weighed by the dollar’s gains against major currencies and pushed down by weak domestic shares.