Gold buying extends to fifth day

Gold buying extends to fifth day

Mumbai: India gold buying continued for a fifth day on Friday in moderate quantities as the yellow metal extended losses, with a weak rupee weighing on sentiment, dealers said.

“Normal buying is happening in the market, I must have done about 60 kgs since morning at about $1,122-1,126 (an ounce)... we may have done about 400-500 kgs since Monday," said a dealer with a state-run bullion dealing bank in Mumbai.

At 2:12pm, international spot gold was $1,124.95/1,125.75 an ounce as against 1,131.40/1,132.20 in the previous session, extending the previous day’s 0.6% fall.

“My order sheet is showing about 150 kgs of orders in between $1,105-1,115 (an ounce)," said the state-run bank dealer.

“We could see good buying below $1,110 (an ounce)," said another state-run bank dealer.

The Indian rupee fell, tracking weakness in most major currencies against the dollar, with a choppy share market failing to provide clarity on the direction of foreign fund flows. [INR/]

A weak rupee makes the dollar-quoted asset expensive.

India imported 300-350 tonnes of gold in 2009, higher that the previous estimate of a little over 200 tonnes, the head of the Bombay Bullion Association said on Monday.