MUMBAI: India gold demand receded on Monday after a slight pick-up in the previous session, as the rupee weakened, making the dollar-quoted asset expensive, dealers said.
"On Friday, we witnessed good volumes and did deals in the range of $1,130-1,140 an ounce, but people are waiting today as the rupee has depreciated," said Pinakin Vyas, assistant vice-president, treasury, with IndusInd Bank.
The Indian rupee dropped following a more than 1 percent fall in the domestic sharemarket as broad risk aversion gripped investors after fraud charges against Goldman Sachs. India imports almost all of its requirements and the local currency plays an important role in determining the landed cost of the yellow metal.
International gold was trading at $1,127.95/1,128.95 at 1:51 p.m. as against the previous close of $1,136.45/1,138.45 an ounce.
It struck a 10-day low of $1,129.65 an ounce on Friday. Gold fell in Europe extending a slide begun in the previous session after U.S. regulators charged Goldman Sachs with fraud, as a retreat in risk appetite lifted the dollar and pressured assets seen as higher risk.
