MUMBAI: Gold buying in India edged up on Monday afternoon ahead of key festivals as the rupee, which climbed towards its highest level in 25 months, limited the upside in prices, dealers said.
"There are deals because in the rupee terms, gold is still cheaper at 19,400 (rupees per 10 grams)," said a dealer with a state-run bullion importing bank.
Gold on the Multi Commodity Exchange (MCX) was trading 0.32 percent higher at 19,592 rupees at 1:35 p.m., still down 0.8 percent from the all-time peak of 19,744 rupees struck on Oct. 7.
"There are many orders placed below 19,200 rupees," said another dealer with a private bank, which deals in bullion.
The appreciation in the rupee has been offsetting some of the global price increase, shielding local traders. The Indian rupee resumed its climb, bolstered by firm stocks, stronger regional peers and the dollar's weakness against major currencies.
Festival demand will peak on Dhanteras slated in November, when jewellers register the highest sales every year.
Weddings also take place during the festival season. This has prompted MMTC Ltd. , the country's second-largest gold importer, to increase December quarter imports by 37 percent to 55-60 tonnes.
