RTRS: India gold buying continues on strong rupee push
MUMBAI (Reuters) - Indian gold traders extended purchases for a second week running on Monday as a strong rupee, which makes the dollar-quoted asset cheaper, triggered a minor wave of buying in the middle of the wedding season, dealers said.
"Demand is good as the rupee has come down, even prices are on the lower side," said a dealer with a state-run, bullion-dealing bank in Mumbai.
"They are all domestic indents, I covered about 200 kgs at mostly $1,126 (an ounce) level, even for last week buying was good. We did about 300-350 kgs at about $1,110-1,111," said another dealer with a bullion-dealing private bank.
The Indian rupee strengthened, tracking a rise in domestic shares, with the dollar's weakness overseas also helping the local unit.
International gold was trading at $1,124.75/1,125.55 at 1:25 p.m. as against the previous close of $1,124.50/1,128.50.
Currently, the wedding season is underway in the world's largest consumer of the yellow metal, with gold-buying festivals like Akshaya Tritiya slated in May.
(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
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