ET:Gold extends gains to near record; business hit
MUMBAI: India gold rose on Thrusday, extending gains for another session to hit its record high, following strong overseas markets, but a firm rupee kept the upside limited, dealers said.
The most-traded gold for August delivery on the Multi Commodity Exchange ( MCX )) was trading 0.20 percent higher at 22,965 rupees per 10 grams, after hitting an intra-day high of 22,989 rupees, nearing the previous record high of 23,148 rupees hit in April.
Trade officials said business was hit, a day after one of the three bomb blasts in rocked Zaveri Bazaar, India's largest bullion market. Near-record prices also slacknened demand.
"Trading volume is low after yesterday's incident... there are less people on the streets," said Samir Shah, vice-president of Riddhisiddhi Bullions, located near the blast site.
Overseas spot gold hit a record high above $1,589, buoyed by a sharp drop in the dollar after Moody's warned the U.S. may lose its top credit rating, the possibility of more Federal Reserve stimulus and Europe's deepening debt crisis.
The Indian rupee edged up on Thursday, helped by gains in the euro and Asian currencies, while negative local equities kept a lid on the rise.
The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
India, the world's biggest buyer of bullion, is in the middle of the sowing season, when farmers, the traditional buyers of the yellow metal, divert their savings to agricultural equipment and fertilizers.
