MUMBAI: Gold demand in India, the world’s biggest buyer of the metal, was moderate yesterday as jewelers replenished inventory for festivals and the wedding season, but retail and investment demand remained sluggish.
The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.25 percent lower at 30,746 rupees ($ 560.24) per 10 grams as of 0947 GMT.
“A stronger rupee is capping the upside in gold prices. Jewelers are buying. They think it’s a good time to buy, but retail demand is weak. People are in holiday mood due to year-end,” said a Mumbai-based dealer with a state-run bank.
Demand in Tamil Nadu remained strong as people in the southern state will celebrate Pongal, a popular harvest festival, in mid-January.
The rupee, which rose yesterday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Overseas gold gave up early gains but prices remained on track for their first weekly gain in a month.
The March silver contract on the MCX dropped 0.71 percent to 57,760 rupees per kg.
