Gold traders trickle in, rupee weighs

Gold traders trickle in, rupee weighs

Mumbai: India gold buyers continued to trickle in for the third straight day on Wednesday on steady international prices, but early weakness in rupee weighed on sentiment, dealers said.

“Yesterday we had good sales and it is continuing even today. They were all waiting for $1,040 (an ounce levels), which is encouraging them to buy," said a dealer with a bullion-dealing private bank in Mumbai.

International gold prices, which guide the domestic market, steadied around $1,040 an ounce, staying above three-week lows hit the day before when the dollar strengthened against the euro.

However, a weak rupee, which makes the dollar-quoted asset expensive, weighed on sentiment, they added.

The Indian rupee trimmed its fall from three-week lows on Wednesday afternoon tracking a brief recovery in local shares, but weakness in other regional currencies continued to weigh on sentiment.

“Rupee which has gone substantially up is affecting sentiment adversely," said another dealer with a private bank.

Some traders were stationed on the sidelines to replenish stocks for weddings, that would last till December, they added.

“There could be good buying if prices fall to $1,030/1,031," said the dealer.