Gold traders hunt for bargains; rupee weighs

Gold traders hunt for bargains; rupee weighs

Mumbai: Gold traders hunted for bargains to stock up for weddings on Friday afternoon as prices fell more than 1.5% from Tuesday’s record high, dealers said.

“There are a few buyers, I covered for 25 kg from $1,397 (an ounce) and downwards, more traders may book in the evening," said a dealer with a state-run bullion dealing bank.

International gold was trading $1,383.05/1,383.80 an ounce as against the previous close of $1,409.39/1,410.20.

Domestic gold on the Multi Commodity Exchange (MCX) was trading at 20,221 per 10 grams, down 1.69% from their record high of 0,569 struck on 9 November.

A weaker rupee weighed on traders sentiment, keeping the downside limited, they added.

The Indian rupee extended its fall to a one-month low as broad gains in the US unit versus majors, and bunched up demand for dollars a day after the Veteran’s Day holiday in the US, weighed.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Traders expect gold buying in India, which gained momentum despite higher prices during last week’s Dhanteras and Diwali festivals, to continue on account of wedding.

India is the world’s largest consumer of bullion.