Date: |
18-08-2011 |
Subject: |
India Gold Extends Gains To Near Peak; Buying Absent |
MUMBAI (Reuters) - India gold extended gains on Wednesday afternoon to near its peak following firm overseas markets, and a weaker rupee, which made the dollar-quoted yellow metal expensive, analysts said.
* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.64 percent higher at 26,392 rupees per 10 grams at 1: 47 p.m., after nearing its previous record at 26,400 rupees.
* The contract had struck its peak at 26,457 rupees last week
* Global gold held steady near a record high after a Franco-German summit failed to convince investors that the euro zone debt crisis would be solved effectively, supporting safe-haven demand for bullion.
* The rupee, which was weaker on euro's retreat and oil demand, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Physical buying stayed weak as prices neared peak.
* "Buying is not very encouraging. Indian buyers are still at sidelines," said a dealer with a private bank in Mumbai, which imports bullion.
* Gold demand from India, the world's biggest buyer of the yellow metal, will gain pace in coming weeks on the back of wedding and festival demand.
Source : ibnlive.in.com
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