RTRS: India Gold buying stays weak on high prices; rupee eyed
(Reuters) - India gold buying remained slack for a second session as prices stayed up although traders kept an eye on the rupee, whose gains typically make the dollar-quoted asset cheaper.
"There have been no deals since yesterday evening after the sudden jump in prices," said a dealer with a state-run bullion dealing bank in Mumbai.
The most-active August gold on the Multi Commodity Exchange (MCX) was trading 0.08 percent higher at 18,463 rupees per 10 grams at 1:21 p.m., following a 0.5 percent gain on Tuesday.
The rupee strengthened as risk appetite returned to markets globally, helping local shares gain over 1 percent in early trade, with the dollar's weakness against majors also boosting sentiment.
"I have plenty of orders in between $1,185-1,195 (an ounce)," said another dealer with a private bank.
Traders have been replenishing stocks for the upcoming second round of festivals starting August.
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.
Following were the prices being quoted by Scotia Mocatta in rupees in the spot market at 1:15 p.m. :
Wednesday Tuesday
Gold .999/10 grams 18,415 18,390
Silver .999/kg 28,634 29,623
Following were prices in rupees on the Multi Commodity Exchange of India Ltd. at 1:22 p.m. :
Contract Current price Net change
Aug gold 18,464 +16
Sept silver 29,102 +58
(Reporting by Siddesh Mayenkar; Editing by Ramya Venugopal) ((siddesh.mayenkar@thomsonreuters.com; +91-22-6636 9163; Reuters Messaging:siddesh.mayenkar.thomsonreuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com
