Mumbai: Gold importers in India picked up a few bargains on Monday to stock for key festivals as prices hit their lowest level in one week, tracking weak global leads.
Festivals are underway in India, the world’s biggest buyer of the metal, and will peak with Diwali and Dhanteras next month. Weddings also take place during this period.
“Activity is there after gold came down to $1,740 (an ounce),” said a dealer with a private bullion importing bank in Mumbai.
The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.51% lower at Rs 31,125 per 10 grams, after hitting a low of Rs 31,118, a level last seen on 8 September, weighed by global leads.
Global gold dropped to a 2-1/2-week low, extending falls from the previous session, as stop-loss selling more than offset support from China inflation data, suggesting there was more room to ease monetary policy.
A weaker rupee limited the downside in prices. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Silver also edged lower, following the yellow metal.
Silver for December delivery on the MCX was 0.76% lower at Rs 60,731 per kg. Reuters
