Gold nears 1-wk high; traders stay away | business | Hindustan Times
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Gold nears 1-wk high; traders stay away

business Updated: Dec 28, 2010 16:15 IST

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Gold extended gains for a third consecutive day on Tuesday tracking overseas leads. Traders, however, stayed away from booking fresh deals hoping for price falls and also seeking clear direction from the rupee.

The rupee plays an important role in determining the landed cost of the yellow metal.

"Everyone is in holiday mood now, no one wants to place deals," said a dealer with a state-run bullion dealing bank in Mumbai.

The most-active February on the Multi Commodity Exchange (MCX) was trading 0.31% higher at 20,575 rupees per 10 grams, after hitting a high of 20,600 rupees, a level last seen on Dec. 22.

The contract had gained 0.36% in the previous two sessions.

International spot gold prices firmed as it was supported by a weaker dollar and buying interest in Asia, while investors hoped for a further rally in the prices next year.

The Rupee was trading marginally higher in lacklustre trade on Tuesday as positive sentiment due to sharp dollar losses overseas was offset by choppy local shares and month-end dollar demand from oil firms.

India's gold buying is expected to restart in mid-January, when harvesting festivals are slated.