Gold demand abates after previous session pick-up

Gold demand abates after previous session pick-up

Mumbai: India gold demand eased on Friday afternoon as traders sought lower prices, after a slight pick-up in offtake late in the previous session, dealers said.

“Yesterday we did about 75-100 kgs, the lowest deal was done at $1,132 (an ounce) upto $1,144," said a dealer with a state-run bank.

International gold, which guides the domestic market, was trading $1,140.20/1,141 an ounce as against the previous close of $1,140.45/1,142.45 an ounce.

Gold held steady after nudging down 0.4% the previous day as the dollar climbed to its highest in nearly a year against the euro in the wake of more bad news for Greece.

However, a strong rupee, which makes the dollar-quoted asset cheaper, weighed on yellow metal prices.

The Indian rupee recovered from the day’s lows as the dollar trimmed its gains against major currencies while domestic shares stayed positive, helping sentiment for the local unit.

Supplies of the yellow metal were getting restored, after a volcano in Iceland treatened to disrupt shipments, dealers added.

“Yesterday we recieved one consignment after a gap of 10 days, tommorow we are getting one and on Monday we will be getting another two," said the first dealer.