Gold prices hit lowest in nearly two weeks

Last Updated: Thu, Nov 29, 2012 09:14 hrs

Gold importers in India, the world's biggest buyer of the metal, sprung back in action, accumulating stocks in small quantities, as prices fell to hit their lowest in nearly two weeks.

Demand for the yellow metal in India during the wedding season, which will continue till early January, generally goes up during this period.

The actively traded gold for December delivery on the Multi Commodity Exchange (MCX) extended losses for a third straight session. It was down 0.77 percent at 31,657 rupees per 10 grams, weighed down by a stronger rupee.

The contract had struck a low of 31,590 rupees earlier in the session, a level last seen on November 16.

"Demand is good as rates are reasonable. People are worried that prices could hit 32,500 in December," said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.

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

Gold prices in the local market have gained 1.76 percent in November, helped by a weaker dollar overseas following a loose monetary policy stance by the U.S.

Silver for December delivery fell more than 1 percent to 62,264 rupees per kg.

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