Gold prices extend gain; physical buying slows
Gold futures edged higher to extend gains for another session on Thursday, helped by a weaker rupee, amid slowing purchases from physical traders ahead of a key gold-buying festival next week.
India, the world's biggest buyer of the metal, will celebrate Akshaya Tritiya next week, the biggest gold-buying festival after Dhanteras. The wedding season is on and will continue through July.
"Demand has slowed down compared to last week. If it comes to Rs 26,000, we might see some more buying," said a dealer with a private bullion-importing bank.
"It has been two months that traders have been stocking up...," said the dealer, referring to the Akshaya Tritiya festival, scheduled next week.
Most traders picked up bargains after prices fell to their lowest level in 18 months in April.
The rupee, which weakened on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
At 3:37 p.m., the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was at Rs 27,180 per 10 grams, due to a weaker rupee.
Silver for July delivery on the MCX was 0.77 per cent higher at Rs 45,255 per kg.
Copyright: Thomson Reuters 2013
