Published on Thu, Nov 19, 2009 at 16:36 | Source : Reuters
Updated at Thu, Nov 19, 2009 at 16:53
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India gold retreats; triggers demand pick-up
India gold prices retreated from record highs on Thursday triggering a slight pick-up in physcial offtake, but a weaker rupee weighed on sentiment, restricting a further downside in the yellow metal, dealers said.
India gold prices retreated from record highs on Thursday triggering a slight pick-up in physcial offtake, but a weaker rupee weighed on sentiment, restricting a further downside in the yellow metal, dealers said.
"There were a few trades with decent quantity, but it is not as per our expectations as the weak rupee is hindering the extent of the fall (in prices)," said Pinakin Vyas, chief manager treasury, IndudInd Bank in Mumbai.
"Markets would get activated at Rs 15,500-15,800," said Vyas.
The most-traded December gold contract was 0.05% higher at Rs 17,114 per 10 grams at 3:42 p.m., after hitting a high of Rs 17,197 earlier.
The contract had struck a record high of Rs 17,236 on Wednesday.
A weaker rupee, which makes the dollar-quoted asset expensive, kept the downside limited in gold.
The Indian rupee fell as a weaker sharemarket, gains in the dollar and concerns authorities may start looking at steps to temper surging capital inflows weighed on sentiment.
"There are a few orders below USD1,100 (an ounce)," said another dealer with a state-run bank.
