Indian gold importers retreat as prices recover

Gold importers in India retreated on Tuesday after booking deals as prices recovered partially from their lowest level in two weeks.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.21 percent higher at 31,500 rupees per 10 grams, recovering from the previous session’s 31,272 rupees, a two-week low.

“There are a few stray deals… yesterday there was good demand due to rupee appreciation,” said a dealer with a private bullion importing bank in Mumbai. “Volume wise seasonal period demand is still not materialising.”

India, the world’s biggest consumer, is in the middle of the festival and wedding season, which will peak in November and taper off in December.

The yellow metal dropped in the previous session to its lowest level since Sept. 7, weighed by a stronger rupee and as data showing weak German business sentiment hurt the euro.

The rupee, which traded firm on Tuesday, kept the upside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.