Gold demand remains weak for second day

Gold demand remains weak for second day

Mumbai: India gold demand remained weak for a second consecutive session as prices traded in the vicinity of its all-time high, but dealers said underlying demand was strong on expectations of higher festive demand.

“There have been no sales from yesterday, we have many orders down below at $1,270/1,275 an ounce," said a dealer with a state-run bullion dealing bank.

Gold on the Multi Commodity Exchange (MCX) was trading 0.13% higher at Rs19,209 per 10 grams, after hitting a high of Rs19,245, nearing the contract high of Rs19,257 struck on 15 September.

Demand in India, the world’s biggest consumer of gold, rises during the festival season of August-November. The demand peaks on Dhanteras--considerd auspicious day to buy gold--in November.

A weaker rupee, which makes the dollar-quoted asset expensive, also weighed on sentiment, they added.

The Indian rupee weakened in lacklustre trade on Thursday as the domestic stock market pulled back from a rally, while major Asian markets were closed for a holiday.