India gold extended gains, picking up from a 2-week low, helped by firm overseas markets and a weak rupee at home that made the dollar-quoted yellow metal expensive, dealers said on Friday.
* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 1.30 percent higher at 26,718 rupees per 10 grams at 1:52 p.m., recovering from its 2-week low of 25,512 rupees hit on Wednesday, a level last seen on Aug. 12.
* Overseas gold prices rose 1 percent, recovering some of this week's hefty losses ahead of a key speech from Federal Reserve chair Ben Bernanke later in Jackson Hole, which will be closely watched for signs as to future U.S. monetary policy.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
* Demand edged up as traders re-stocked to meet festival and wedding demand.
* "There is demand as traders are expecting that prices will still go up," said a dealer with a state-run bullion importing bank.
* Festival season in India, the world's largest consumer of yellow metal, has started and will peak with October before tapering off in December.
Source: www.economictimes.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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