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India gold demand slack as rupee hits 2-month low
A shop attendant arranges gold jewellery inside a shop in Hyderabad in this June 2009 file photo.
Credit: Reuters/Krishnendu Halder
MUMBAI |
MUMBAI (Reuters) - India gold local demand stayed slack on Monday as the rupee hit a two-month low making the imported yellow metal expensive, dealers said.
"A weak rupee is driving buyers away," said a dealer with a private bank in Mumbai. "They would rather wait for favourable prices."
The most-active August contract was 0.35 percent higher at 14,551 rupees per 10 grams at 1:26 p.m., taking support from a weak rupee.
The Indian rupee extended losses after falling the most in four months last week, as banks bought dollars in anticipation of foreign fund outflows from local shares.
Dealers said a drop in prices to 14,000 rupees level could spur buying interest as traders sought to stock for the upcoming festival demand.
"I have some advance orders at $900 (per ounce)," said the dealer with the private bank.
A series of festivals and auspicious days for weddings is expected to boost gold demand from August-end till the end of the year.
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