MUMBAI (Reuters) – Gold importers in India stayed on the sidelines weighed by high prices and as inauspicious period for buying started, with demand slackness expected to continue for another fortnight.
“Demand is not that good, the only hope and support is the rupee. After the inauspicious period, demand will start materialising due to Diwali,” said a dealer with a private bullion importing bank in Mumbai.
After Shradh, an inauspicious period when Indians pay homage to ancestors, festivals will restart with Dusshera in late October and will peak with Diwali and Dhanteras next month.
The most-traded gold for December delivery on the Multi Commodity Exchange (MCX) was 0.25 percent lower at 31,335 rupees per 10 grams at 0927 GMT, after hitting a low of 30,308 rupees, a level last seen on September 3, weighed by a firmer rupee.
The rupee, which strengthened on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Prices of the yellow metal are still up 13 percent on year.
Silver also edged lower, easing from their highest level in more than a week, following the yellow metal.
Silver for December delivery on the MCX was 0.50 percent lower at 62,618 rupees per kg, easing from the previous session’s high of 64,999 rupees, a level last seen on September 21.
(Reporting by Siddesh Mayenkar; Editing by Anand Basu)