ET:Gold extends losses to over 1 week low; physical buying up
MUMBAI: India gold extended losses on Friday to its lowest level in more than a week following weak overseas markets and a stronger rupee, with physical traders kicking off purchases to stock up for the festival and wedding demand, analysts said.
At 12:47 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was trading 0.93 percent lower at 27,216 rupees per 10 grams. The contract had earlier hit a low of 27,131 rupees, a level last seen on Sept. 7.
Global gold slipped more than 1 percent, heading for its biggest weekly drop since March 2009, as stock markets gained and the euro rose after major central banks around the world strived to fight the debt crisis in Europe.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
"Demand is picking up, gold traders have started making noise since last night," said a dealer with a private-run importing bank in Mumbai.
India is the biggest consumer of bullion followed by China. Wedding and festival demand is expected to gain pace and peak in October and November before tapering off in December.
