Gold buying trend stays weak as rupee tumbles

Gold buying in India, the world's biggest consumer of bullion, continued its weak trend, after the rupee tumbled 1 percent, pushing premiums lower, dealers said on Friday.

"We are virtually jobless from October 8, retail buying is missing... Indian rupee interest rates are high and people prefer to park money in fixed deposits," said Daman Prakash Rathod, director with Chennai-based MNC Bullion.

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Gold on the Multi Commodity Exchange was trading at 29,077 rupees per 10 grams helped by a weaker rupee and global markets. The yellow metal has gained more than 5 percent since November.

Premiums charged on London prices also fell to $1 per ounce as buying weakened, from last week's $3 an ounce. Scrap flow continues unabated.

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The rupee, which fell 1 percent on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

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Weddings season demand will end by last week of December, and halt briefly for three weeks, before re-starting at the end of the month.

Near-month silver on the MCX was 56,356 rupees per kg, up 0.21 percent on day.