Gold buyers continue to stock for weddings

Gold buyers continue to stock for weddings

Mumbai: India gold traders continued with their purchases for a fourth straight day on Thursday to stock for weddings as prices stayed near $1,030 (an ounce) levels, but an early weakness in rupee weighed on sentiment, dealers said.

“Traders have responded well to the recent correction after Diwali and alot of orders are getting filled up," said Pinakin Vyas, chief-manager treasury, IndusInd Bank in Mumbai.

International gold prices, which guides the domestic markets, climbed above $1,030 per ounce as a weaker dollar supported prices, while a fall in holdings in the world’s largest gold-backed exchange-traded fund capped gains.

International spot gold has fallen about 2% since the start of the week.

The Indian rupee, which fell to near one-month lows early in the session on Thursday, recovered to be trading marginally above its previous close, as exporters sold dollars to book profits while a recovery in the domestic sharemarket also boosted.

A weak rupee makes the dollar-quoted asset expensive.

“Deals are happening and it has been a good day so far for us, they all want to stock now after good Diwali and Dhanteras," said another dealer with a private bank.

Dealers added traders would speed-up their purchases if prices stay or dip slightly from their current levels. India’s wedding season will continue till December.

“Consolidation at these levels could help, and a dip to $1,020-1,025 would help even better," he added.