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Gold prices at lowest level in two weeks
December 19, 2012 / 9:21 AM / 5 years ago

Gold prices at lowest level in two weeks

MUMBAI (Reuters) - Gold importers in India, the world’s biggest buyer of the metal, continued picking up bargains for weddings as a stronger rupee weighed on the yellow metal, extending losses to the lowest level in nearly two weeks.

A salesman arranges a gold necklace inside a gold jewellery showroom in Kochi April 16, 2012. REUTERS/Sivaram V/Files

The wedding season will continue till early January and gold is an important gift item at marriages.

The actively traded gold for February delivery on the Multi Commodity Exchange was 0.52 percent lower at 30,894 rupees per 10 grams at 0909 GMT, after hitting a low of 30,890 rupees, its lowest since December 6.

“The market is very active since yesterday evening when gold prices started dropping,” said a dealer with a bullion importing private bank in Mumbai, adding: “Today is a busy day for us.”

The rupee, which inched higher on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas market, however, gold bounced back on a weaker dollar, but prices were still in sight of an almost four-month low.

Silver also fell to its lowest in two weeks following the yellow metal.

March silver also extended losses to trade 0.31 percent lower at 60,500 rupees per kg, after hitting a low of 60,367 rupees, a level last seen on December 5.

Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu

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