ET: Gold demand stays weak for third day as prices rise
MUMBAI: Gold futures rose on Wednesday afternoon on a weak rupee and gains overseas, but physical demand in the local market remained muted for a third straight day as buyers postponed purchases hoping for a correction, dealers said.
* At 3:58 p.m., the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.55 percent higher at 22,506 rupees per 10 grams.
* "For the past few days demand is very weak. Jewellers are not interested in buying at current level," said a Mumbai-based dealer with a state-run bank dealing in bullion.
"We can see improvement in demand if prices fall to $1,480 per ounce or if prices rise above $1,540. Sharp rise in prices will prompt panic-buying."
* International spot gold was bid at $1,526.20 a troy ounce at 0923 GMT from $1,525.75 an ounce late in New York on Tuesday when the precious metal hit a three-week high of $1,527.45.
* The Indian rupee, which has a bearing on the landed cost of dollar-quoted gold, fell further in afternoon trades on Wednesday to hover near its three-month lows as concerns of dollar outflows heightened on the back of the continuing fall in local shares.
