Gold prices jump to 1-month high

Last Updated: Thu, Nov 08, 2012 09:09 hrs

Gold importers in India, the world's biggest buyer, refrained from booking new deals as a weaker rupee kept prices in the vicinity of their highest level in a month.

At 02:08 p.m., the most-active gold for December on the Multi Commodity Exchange (MCX) was 0.37 percent higher at 31,323 rupees per 10 grams, after hitting a high of 31,348 rupees, a level last seen on October 11.

"The (demand) scenario is dull ahead of festivals due to a sudden spike in gold prices," said a dealer with a private bullion importing bank in Mumbai, adding "seasonal demand will be met by old stocks."

The festival season in India will peak with Dhanteras and Diwali next week, with weddings also slated to continue till December.

The rupee, which weakened on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas markets, gold traded flat below the 2-1/2-week high hit in the previous session after U.S. President Barack Obama was re-elected, as a strong dollar largely put off buyers.

Silver also traded higher tracking the yellow metal.

Silver for December delivery on the MCX was 0.48 percent higher at 59,539 rupees per kg.

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