Indian 'gold rush' abates despite dip in prices
23 Sep 2011
Gold prices in India fell more than one per cent on Friday keeping in step with the fall in bullion prices in international markets. However, the slump in the rupee against the dollar kept the prices in India from going down further.
Gold in the 'most-active' category for October delivery on the Multi Commodity Exchange (MCX) was 0.34 per cent lower at Rs27,820 per 10 gm in mid-day trading. October is the peak of the festival season, when gold demand in India is traditionally highest.
The most-active US gold futures contract reversed course and fell more than 1 per cent to $1,722.3 a troy ounce on Friday, extending a drop of 3.7 per cent in the previous session.
In India, prices are down about 3 per cent from the contract high of Rs28,744 struck on 6 September.
Gold investors are staying away as the weakening value of the rupee to the dollar has largely blunted the fall in international prices while local prices are holding steady, dealers said.
Some are also anticipating that international gold prices may fall further to as low as $1,650-$1,680 a troy ounce.
