MUMBAI Gold importers in India booked deals for the peak wedding season as prices stayed near their lowest level in a month, eyeing the key parliament vote on entry of foreign super markets and its impact on the rupee.
The wedding season, which started in September and peaked last month, will continue until early January. Gold is an essential part of gifts during the season in India, the world's top gold buyer.
"Reasonable activity is there at these levels... people are eyeing the FDI retail vote in the parliament, which could lead to appreciation in the rupee, if it goes through," said a dealer with a private bullion importing bank in Mumbai,
People are targeting 30,500 rupees level seen during Diwali or in early November, the dealer said.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.16 percent higher at 31,417 rupees per 10 grams at 0925 GMT, recovering partly from previous session's low of 31,345 rupees, the lowest since November 6.
A stronger rupee kept a lid on gains. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Silver for March delivery was 0.69 percent higher at 62,939 rupees per kg, recovering from previous day's low of 62,425 rupees, a level last seen on November 16.
(Reporting by Siddesh Mayenkar; Editing by Anand Basu)
Trending On Reuters
Ready for Rate Hike
Two years ago India was a "fragile five" economy growing at 5 percent, facing a severe current account deficit and the rupee at record lows as the U.S. Fed Reserve prepared to taper its stimulus programme. Today, two years into the term of RBI Governor Raghuram Rajan, India is set to confidently face the Fed's first rate rise since 2006. Full Article