MUMBAI: India gold buying remained slack on Friday as prices edged higher tracking overseas leads, with a stronger rupee, which makes the dollar-denominated yellow metal cheaper, acting in support, dealers said. "Demand is slightly low since yesterday due to higher prices, despite a strong rupee," said a dealer with a state-run bullion dealing bank in Mumbai, which quoted gold at 19,060 rupees per 10 grams.
The most-active August contract on the Multi Commodity Exchange (MCX) was trading 0.26 percent higher at 18,339 rupees per 10 grams, after gaining 0.5 percent in the previous session. The contract is well below the record high of 19,198 rupees struck in early June.
The Indian rupee edged higher as domestic shares shed most of their early losses while some weakness in the dollar against major currencies also helped.
A stronger rupee makes the dollar-quoted asset cheaper. The onset of monsoon typically crimps gold demand in India as rural households, which account for 65 percent of total gold buying, use funds to buy seeds and fertiliser.
Gold imports into India may fall to less than 15 tonnes from 29.9 tonnes a year earlier as near-record prices and the onset of monsoon dent demand, a trade body official said on June 14.
