Gold demand in India,the world’s top consumer of the precious metal,improved on Wednesday as prices were trading at their lowest in three weeks following losses in the world market and on a strong rupee.
At 1552 IST,the benchmark October contract on the Multi Commodity Exchange (MCX) was 0.12 per cent lower at 30,715 rupees per 10 grams. It hit a low of 30,502 rupees in the previous session,a level last seen on August 20.
The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It rose more than 1 per cent on Wednesday.
In the overseas market,gold slipped to a three-week low on Wednesday before recovering on bargain-hunting,but hopes a U.S. military strike against Syria could be averted dented its safe-haven appeal.
“Jewellers are slowly stepping up purchases for the peak festive season. Buyers are very cautious as the rupee is now reversing the weak trend and quickly appreciating,” said a Mumbai-based dealer with a private bank.
Customs department issued guidelines for gold imports last week.
Silver for September delivery on the MCX was 0.36 percent higher at 52,425 rupees per kg.