November 5, 2012 / 10:53 AM / 5 years ago

Gold prices near 10-week low, importers stock up

MUMBAI (Reuters) - Gold importers in India stocked the yellow metal in the week preceding key festivals as prices hovered near their lowest level in more than 10 weeks, helped by a weaker rupee and firm world markets.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.54 percent higher at 30,664 rupees per 10 gram, not far from Friday’s low of 30,366 rupees, a level last seen on August 14.

“Business is good as people are comfortable with these rates,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in Kolkata.

“If rates remain steady up to Diwali, we could see good sales.”

Gold buying will peak in India, the world’s biggest buyer of the metal, during Dhanteras and Diwali next week. Weddings will also take place during this period.

The rupee, which weakened on Monday, plays an important role in determining the landed cost of the dollar-denominated yellow metal.

In the overseas market, gold nudged a touch higher, paring falls after stronger-than-expected U.S. jobs data sent the yellow metal to a two-month low in the previous session.

Silver also edged higher following the yellow metal.

Silver for December delivery on the MCX was 0.43 percent higher at 57,847 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu

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