MUMBAI: Gold traders stayed away from entering into fresh deals on Tuesday as the yellow metal extended gains after hitting a five-week high in the previous session, with a weak rupee weighing on sentiment, dealers said.
"It's an absolutely dull scenario after yesterday's sudden move and prices are still holding well above $1,150 (an ounce) mark," said Pinakin Vyas, chief manager-treasury, IndusInd Bank in Mumbai.
International gold was slightly higher at $1,156.20/1,157.20 an ounce as against $1,151.10/1,151.90 at 2:13 p.m., after hitting a five-week high of $1,161.50 on Monday. "We could get some orders if prices move down to $1,120 (an ounce)," said another dealer with a state-run bank.
The Indian rupee dropped, retreating from more than 15-month highs hit in the previous session, following the dollar's rise versus major units and tracking a choppy sharemarket. A weak dollar makes the dollar-quoted asset expensive.
India imported 300-350 tonnes of gold in 2009, higher that the previous estimate of a little over 200 tonnes, the head of the Bombay Bullion Association said on January 4.
