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Reuters
Published
May 25, 2010
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India gold demand retreats as prices near record

By
Reuters
Published
May 25, 2010

MUMBAI (Reuters) - India gold demand retreated from a pick-up witnessed in the last seven sessions, as prices neared the record high deterring buyers.




Gold prices rose in India tracking a weak rupee, which made the dollar-quoted yellow metal expensive, dealers said.

"Demand is much lesser today as the rupee rate has gone up... yesterday i did about 100 kgs below $1,182 (an ounce)," said a dealer with a state-run bank in Mumbai.

The most-active June contract was trading at 18,346 rupees per 10 grams at 2:05 p.m., after hitting a high of 18,391 rupees, nearing the previous record of 18,424 struck last week.

"Markets could get re-activated if prices hit 17,000 rupees again," said another dealer with a private bank.

The Indian rupee fell to its lowest level in seven months as shares dropped over 2 percent on a fresh bout of risk aversion which gripped markets globally, while the euro's losses against the dollar also hurt.

(Reporting by Siddesh Mayenkar; Editing by Ramya Venugopal)

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