MUMBAI: Gold buying turned weak as traders sought lower prices to execute deals ahead of the festive season, and a weaker rupee also weighed on sentiment, dealers said.
"It's quiet today as there is no much change in prices... traders are unwilling to book new deals," said a dealer with a state-run bullion dealing bank.
International spot gold, which guides the domestic market, was trading $1,198.20/1,198.70 an ounce as against the previous close of $1,194.85/1,198.85 an ounce. "I have advance orders and all of them are below $1,190," said another dealer with a private bank.
Indian rupee weakened tracking a fall in domestic shares and Asian currencies and may fall further on negative sentiment in local and Asian shares. A weaker rupee makes the dollar-denominated yellow metal expensive. Traders have been stocking up the yellow metal for the upcoming festivals, when demand for bullion goes up.
India, which accounts for more than 20 percent of global demand, will celebrate the Hindu festival of Raksha Bandhan on Aug. 24, and Janmasthami and Ganesh Chaturthi in September.
