Mumbai, May 28: India gold buying picked up slightly on Friday afternoon as prices fell further from Wednesday’s all-time high, dealers said.
“There has been a little buying, but I am not seeing big deals at the moment,” said a dealer with a state-run bank, adding that the Indian rupee is acting as a support.”
Gold prices on the Multi Commodity Exchange (MCX) extended losses for a second day weighed down by a strong rupee, which made the dollar-quoted asset cheaper.
The rupee strengthened as shares climbed after risk appetite got a boost from China’s calming comments on its investments in debt-ridden Europe, but the dollar’s gains against majors limited the rise.
The benchmark gold June contract was trading 0.39 percent lower at 18,317 rupees per 10 grams at 1:38 p.m., after losing 0.8 percent in the previous session, falling from an all-time high of 18,648 rupees struck on May 26.
Dealers said demand is likely to face the seasonal monsoon slackness for the next two months.
“We might have to see little buying in June and July due to monsoons,” said another dealer with a private bank.
—-Agencies