Gold prices steady in India, importers wait and watch

Mumbai: Gold importers in India booked a few stray deals, not rushing in to buy, as prices continued to be supported by a weaker rupee and firm overseas markets ahead of festivals.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) hit a high of Rs 31,149 per 10 grams before trading almost steady at Rs 31,080 by 1:54 pm.[caption id="attachment_509698" align="alignleft" width="380"] Getting costlier. AFP[/caption]

"There are no deals as the rupee is on the higher side and even gold is holding higher up at $1,710 (an ounce)," said a dealer with a private bullion importing bank in Mumbai.

"Sizeable corrections will enable the physical market," the dealer said.

The festive season will peak next month with Dhanteras and Diwali.

The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, weakened on Wednesday, supporting prices.

Global gold edged up but was poised to snap a four-month winning streak, with investors staying on the sidelines ahead of key US employment data and in the wake of Hurricane Sandy.

More from Fwire

Silver edged higher following trends in copper, another industrial metal, and gold. Silver for December delivery on the MCX was 0.48 percent higher at Rs 59,682 per kg.

Reuters