Gold importers book small deals as festivals near

Last Updated: Mon, Oct 08, 2012 10:22 hrs

Gold importers from India, the world's biggest buyer of the metal, booked deals in small quantities as the prices steadied near their lowest level in more than a month, after support from a weaker rupee was offset by weak global leads.

At 2:39 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.09 percent higher at 31,195 rupees per 10 grams, after hitting a low of 31,081 rupees, nearing a level last seen on August 28.

"Some deals are happening... it's on average," said Ketan Shroff, director of Penta Gold Pvt. Ltd., a Mumbai-based wholesaler, adding "people are watching for levels near 30,500 rupees."

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.

Overseas gold shed more than half a percent on Monday, on course for its sharpest one-day loss in three weeks. The rupee, which weakened on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver, however, edged lower following copper, another industrial metal.

Silver for December delivery on the MCX was 0.79 percent lower at 61,311 rupees per kg.

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