Gold traders at bay due to weak rupee
MUMBAI (Reuters) - Gold traders in India, the world's biggest buyer of bullion, were on the sidelines on Thursday as a weak rupee, which hit its lowest level in four months, outweighed weak sentiment in the overseas markets.
* The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.13 percent 29,230 rupees per 10 grams helped by a weaker rupee.
* "Sales are not according to expectations because of the rupee, and this situation will continue," said Harshad Ajmera, proprietor of JJ Gold House in Kolkata.
* Most jewellers are fully stocked after lower-than-expected sales on auspicious Akshaya Tritiya, which fell on April 24. Sales fell 50 percent to 10 tonnes on the festival day.
* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* In the overseas market, gold was under pressure after data from both sides of the Atlantic fuelled concerns about global growth.
* Investors will closely watch a meeting by the European Central Bank later in the day. The ECB is expected to hold fire despite calls to restart its bond-buying programme to shield austerity-hit Spain from further pain.
(Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)
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The recent market correction was overdue. A further correction would be an opportunity for those who missed the rally in the past few months. The markets could get a reality check next year and consolidate before the next big movement. I still believe PM Modi will not fritter away his mandate and deliver on his promise, albeit with a delay, writes Ambareesh Baliga. Article