India gold rises on weak rupee; spot demand stays poor

Last Updated: Thu, Jun 16, 2011 13:20 hrs

India's gold futures rose on Thursday evening on a weak rupee, but demand in the local spot market remained poor in the absence of any major festival, dealers said.

nohup.out nohup.out_m_folder At 6:09 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was up 0.36 percent to 22,501 rupees per 10 grams.

nohup.out nohup.out_m_folder "Demand was weak today, but if prices rise by another 400-500 rupees jewellers may start buying," said a Mumbai-based dealer with a state-run bank dealing in bullion.

"They have been waiting for a correction, but prices were not falling. They need to buy to replenish their inventory after wedding season."

nohup.out nohup.out_m_folder International gold fell on Thursday after the U.S. dollar hit a three-week high against the euro as concern escalated over the impact of the Greek debt crisis on the euro zone, knocking commodities.

nohup.out nohup.out_m_folder The rupee, which has a bearing on the landed cost of dollar-quoted gold, ended at 44.90/91 per dollar on Thursday, weaker than 44.77/78 per dollar at the previous close, following a slide in the euro and lower domestic shares.

(Reporting by Rajendra Jadhav; Editing by Sunil Nair)

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