India gold buying resurfaces as prices steady near 2-wk low
India gold buying resurfaced on Wednesday afternoon as prices steadied near their lowest level in two weeks offsetting a weaker rupee even as the wedding season drew to a close in the world's largest consumer of the yellow metal, dealers said.
January 05, 2011 / 16:49 IST
India gold buying resurfaced on Wednesday afternoon as prices steadied near their lowest level in two weeks offsetting a weaker rupee even as the wedding season drew to a close in the world's largest consumer of the yellow metal, dealers said.
"There is renewed enthusiasm in market after markets crashed by USD 40 yesterday, I booked deals for 200 kgs from yesterday evening from USD 1,417 and below," said a dealer with a state-run bank in Mumbai.The most-active gold for February delivery on the Multi Commodity Exchange was trading 0.15% higher at Rs 20,480 per 10 grams at 1:27 pm, drawing away from a two-week low of Rs 20,423 struck in the previous session, a level last seen on December 23.International spot gold steadied from a more than two percent fall in the previous session, as bargain hunting on the physical market lent support and helped offset a stronger dollar.India's gold buying is expected to restart in mid-January, when harvest festivals are slated.Traders were undeterred by a weaker rupee, which made the dollar-quoted yellow metal expensive.The Indian rupee dropped to its lowest level in more than a week as the dollar climbed broadly against major currencies and Asian peers, while a shaky shares added to the downbeat mood.India's central bank has allowed 7 more banks to import gold and silver, bankers and trade officials said on Monday, a move that will smoothen supply in the world's largest consumer of the metals. 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!
