gold
MUMBAI: India gold buying slowed to a trickle on Wednesday afternoon though a weak rupee kept the downside in local prices limited in the middle of the wedding season as traders struggled to stock up, dealers said.
"There hasn't been much demand for gold as rupee has weakened beyond expectations, which is not supporting gold demand," said a dealer with a state-run bullion importing bank.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was trading 0.30 percent lower at 20,610 rupees per 10 grams at 1:11 p.m.
"Some orders were placed at Rs 19,000 yesterday, which are still pending," said another dealer with a private-run bank.
The Indian rupee weakened drifting away from a near one-week high reached in the previous session as broad gains in the dollar versus major currencies and weak local shares weighed.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
The wedding season that follows Dhanteras and Diwali festivals is underway in India and will continue till end-December, sustaining the demand for the yellow metal.
The country accounts for 20 per cent of global demand for gold jewellery.
In July-September, India imported 214 tonnes of gold, up 21.6 per cent on year, the World Gold Council said.
"There hasn't been much demand for gold as rupee has weakened beyond expectations, which is not supporting gold demand," said a dealer with a state-run bullion importing bank.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was trading 0.30 percent lower at 20,610 rupees per 10 grams at 1:11 p.m.
"Some orders were placed at Rs 19,000 yesterday, which are still pending," said another dealer with a private-run bank.
The Indian rupee weakened drifting away from a near one-week high reached in the previous session as broad gains in the dollar versus major currencies and weak local shares weighed.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
The wedding season that follows Dhanteras and Diwali festivals is underway in India and will continue till end-December, sustaining the demand for the yellow metal.
The country accounts for 20 per cent of global demand for gold jewellery.
In July-September, India imported 214 tonnes of gold, up 21.6 per cent on year, the World Gold Council said.
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