January 14, 2011 / 21:47 IST
India gold prices eased a tad on Friday afternoon following weakness in overseas market, triggering a slight pick-up in offtake for harvest festivals and wedding season slated later, though supply issues remained, which could push premiums even higher, dealers said.
"The USD 10-an ounce-fall has helped demand, I placed deals for 80-85 kgs at $1,375-1,377," said a dealer with a state-run, bullion-dealing bank in Mumbai.The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was trading 0.40% lower at Rs 20,357 per 10 grams at 12:59 p.m., after hitting a low of Rs 20,353.A weaker rupee kept the downside in prices limited. The Indian rupee fell tracking losses in local shares, which raised worries of foreign investors continuing to pull out funds from Asia's third-largest economy, and weighed by mild gains in the dollar overseas. Comex gold was trading 0.79% lower at USD 1,376 an ounce. Bank dealers said premiums may rise to USD 1.65-1.75 an ounce from the current USD 1.40/1.45."Supply is still a problem, and it looks unlikely to be solved until February. If this demand trend continues, we might see further rise in premiums," said the state-run bank dealer. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
