Gold futures extend rise; importers refrain from buys

Last Updated: Mon, May 06, 2013 10:23 hrs

Indian gold futures extended gains on Monday, helped by a weaker rupee and firm overseas markets, driving away importers seeking to stock for the upcoming festival.

At 3:25 p.m., the most-active gold contract for June delivery on the Multi Commodity Exchange (MCX) was 0.69 percent up at 27,150 rupees per 10 grams.

The rupee, which hit its highest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas markets, gold edged higher, with some buyers tempted back to the market after a second week of gains suggested last month's price slide to a more than two-year low has run its course for now.

"Demand has slowed down compared to last fortnight as prices are up," said Ketan Shroff, director with Penta Gold, a wholesaler in Mumbai.

India, the world's biggest buyer of the metal, will celebrate Akshaya Tritiya next week, the second-biggest gold buying festival after Dhanteras. Weddings have also started and will continue until July.

Silver contract for July delivery on the MCX was 0.45 percent higher at 45,380 rupees per kg.

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