Mumbai: Gold prices in India, the world's biggest buyer of the metal, could rise past their highest level in more than 15 weeks hit on Tuesday, helped by a weakness in the local currency, traders said.
At 1141 GMT, the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.71 per cent higher at Rs. 28,478 per 10 grams, after hitting Rs. 28,479, the highest since April 12.
"Mostly rupee weakness will contribute to local price strength. Also, due to the recent measures, spot prices are at a premium," said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai.
The rupee, which weakened past 60 rupees to a dollar again, plays an important role in determining the landed cost of the yellow metal. Imports of the yellow metal has halted after the central bank tied gold imports to exports last week, pushing premiums to about $45 an ounce on London prices.
(Read: Rupee slides to 60.55 as markets test RBI's resolve)
Buying is advised in August gold at Rs. 28,250, for a stop loss of Rs. 28,100, and targeting Rs. 28,700, said Mr Thiagarajan.
Silver for September delivery on the MCX was 0.03 per cent higher at Rs. 41,158 per kg.
Mr Thiagarajan recommends buying silver above Rs. 42,000 levels, with a stop loss of Rs. 41,500, targeting R
