Gold traders at bay on record high prices
MUMBAI (Reuters) - India gold traders were reluctant to place fresh orders as prices struck a fresh record high in afternoon trade on Wednesday, helped by firm overseas leads, but a strong rupee checked a further rise.
"We did a few deals yesterday, but the market has turned quiet today. Traders are enquiring, but aren't materialising," said Pinakin Vyas, chief manager-treasury, IndusInd Bank, Mumbai.
The gold contract on the Multi Commodity Exchange (MCX) made a new record high of 16,784 rupees in afternoon trade, surpassing an earlier high of 16,749 rupees hit in morning trade.
The Indian rupee reversed its early fall in afternoon trade on Wednesday as local shares rose 2 percent, while the dollar continued to trade marginally lower against a basket of currencies.
A strong rupee makes the dollar-quoted asset cheaper.
Dealers said traders were seen comfortable in booking stocks at $1,050 an ounce or 16,200 rupees per 10 grams levels as they seek to replenish stocks for the wedding season, which will last till December.
"Still there is appetite, I have plenty of orders at $ 1,050-1,060," said another dealer with a state-run bank.
(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu)
© Thomson Reuters 2009 All rights reserved
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