Gold buying edges up ahead of festivals

Last Updated: Tue, Oct 09, 2012 10:12 hrs

Gold importers from India, the world's biggest buyer of the yellow metal, booked deals in small quantities to stock up for upcoming festivals as prices steadied near their highest level in a week.

At 3:05 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.04 percent higher at 31,340 rupees per 10 grams, after hitting a high of 31,399 rupees, a level last seen October 3.

"There are some volumes in gold as festivals and marriage season... sales are 50 percent below expectations," said Haresh Acharya, head of bullion desk at Parker Bullion, a wholesaler in Ahmedabad.

The festival and wedding season in India will start picking up in late October and peak next month during Diwali and Dhanteras, traditionally occasions for buying gold.

COMEX gold edged 0.15 percent lower to $1,772.9 per ounce. The rupee, which weakened during the day, plays an important role in determining the landed cost of the dollar-quoted metal.

Silver also traded on a flat note near its lowest level in more than a month, tracking the yellow metal.

Silver for December on the MCX was flat at 61,500 rupees per kg.

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