January 18, 2011 / 16:08 IST
India's gold futures extended gains for a third day on Tuesday afternoon, touching a level seen late last week, keeping traders away from placing fresh deals as they awaited direction from the rupee, dealers said.
"There are stray deals as prices have recovered and rupee is holding well above 45.50 level," said Pinakin Vyas, assistant vice-president, treasury, at bullion importing IndusInd Bank in Mumbai.The most-active gold for February delivery was trading 0.19% higher at Rs 20,330 per 10 grams, after hitting a high of Rs 20,347, a level last seen on January 14. The contract had gained 0.3% in the previous two sessions."I imported 1.2 tonne last week, though shipments are getting delayed and therefore rising premiums," said Vyas.The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.The winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.The wedding season starts in February.In India, which accounts for 20% of global demand for jewellery, gold is widely gifted in religious celebrations and weddings. 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!
