NEW DELHI (Reuters) - Gold prices in India, the world’s biggest buyer of bullion, drifted lower on Wednesday on global cues and as the rupee retreated from two-month lows touched against the dollar earlier in the day.
At 1213 GMT, the most active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.06 percent lower at 31,728 rupees per 10 grams.
The rupee, which closed little changed against the dollar, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
“Overall, the market is bullish. But there has been some easing of demand compared with the pre-Diwali period,” said a dealer with a state-run bank.
The run up to Diwali - the festival of lights - which India celebrated on November 13, coupled with the wedding season demand had pushed up prices in the recent past. The wedding season demand will taper off in December.
Overseas gold inched lower on Wednesday as the dollar firmed after Greece’s lenders failed to strike a debt deal for the country, although sentiment for bullion remains supported by expectation of continuous monetary easing by central banks.
Silver bucked the trend. Silver for December delivery on the MCX was 0.15 percent higher at 61,630 rupees per kg.
Reporting by Malini Menon; Editing by Prateek Chatterjee