Gold prices jump to 1-month high

Gold importers in India, the world's biggest buyer, refrained from booking new deals as a weaker rupee kept prices in the vicinity of their highest level in a month.

At 02:08 pm, the most-active gold for December on the Multi Commodity Exchange (MCX) was 0.37 percent higher at Rs 31,323 per 10 grams, after hitting a high of Rs 31,348, a level last seen on October 11.

"The (demand) scenario is dull ahead of festivals due to a sudden spike in gold prices," said a dealer with a private bullion importing bank in Mumbai, adding "seasonal demand will be met by old stocks."

The festival season in India will peak with Dhanteras and Diwali next week, with weddings also slated to continue till December.

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

Copyright @ Thomson Reuters 2012