Gold futures edged lower on Friday, but still stuck in familiar trading range, though demand from physical buyers was down compared with last week amid limited supplies ahead of a major gold buying festival.
India, the world's biggest buyer of the metal, will celebrate Akshaya Tritiya on May 13, the biggest gold-buying festival after Dhanteras. The wedding season is on and will continue through July.
"Deals have slowed because there is a shortage of stock in the market," said a dealer with a private bullion importing bank. Most of the banks do not have stocks for immediate delivery, the dealer added.
Premiums were quoted lower at $4-$5 an ounce as against $8 last week due to lower demand, dealers said.
The actively traded gold for June delivery on the Multi Commodity Exchange
(MCX) was 0.8 percent lower at 26,951 rupees per 10 grams at 3:22 p.m.
Global gold prices fell, heading for their first weekly loss in three, as the dollar hit four-year highs against the yen and stocks rose after upbeat jobs data fuelled optimism over the U.S. recovery.
& However, a weaker rupee limited the downside. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
& Silver for July delivery on the MCX was 0.65 percent lower at 44,870 rupees per kilogram.