Gold buying muted for third session

Gold buying muted for third session

Mumbai: India gold buying continued to stay muted for a third session on Thursday afternoon as traders awaited lower prices even as a strong rupee failed to entice buyers, dealers said.

“I have done only 5 kgs so far, yesterday was lukewarm... but on Monday, we saw some good sales at $1,220-1,225 (an ounce)," said a dealer with a state-run bank in Mumbai, which deals in bullion.

The strong rupee, which typically boosts buying as it makes the imported yellow metal cheaper, is not helping, another dealer with a private bank based in Mumbai added.

International gold steadied after hitting an eight-week high earlier, with a weak dollar lending some support but with a pick-up in risk appetite temporarily denting the metal’s safe haven appeal.

Gold was trading at $1,241.85/1,242.60 an ounce as against the previous close of $1,239/1,241.

The Indian rupee rose supported by mild gains in domestic shares, and broad weakness in the US dollar after weak home sales data sparked concerns of another downturn in the world’s largest economy.

India’s ongoing festive season will continue until November, when Dhanteras -- the biggest gold buying festival is slated.