ENM: Gold extends gains to 3-week high; buyers put off
MUMBAI: India gold extended gains for a fourth session on Friday to its highest level in three weeks, helped by a weak rupee, but price gains deterred traders to book new deals in the wedding season.
"I just booked for 3-4 deals from morning, there would be a lack of activity unless the market breaks the upside or downside," said a dealer with a state-run, bullion-dealing bank.
The most-active April contract on the Multi Commodity Exchange (MCX) was trading 0.13 percent higher at 20,453 rupees per 10 grams after hitting a high of 20,498 rupees, a level last seen on Jan. 20.
Dealers said supply issues caused due to excessive snowing in refining areas and low carry-over stocks were easing, which could pressure premiums downwards.
"Premiums may come down to $2 (an ounce)," said another dealer with a state-run private bank.
Winter harvesting season is underway in India and is expected to leave more disposable income with rural households, which contribute significantly to gold demand.
India accounts for 20 percent of global demand for jewellery, and the next marriage season kick offs in February.
