The gold traders were reluctant to place fresh orders as prices struck a fresh record high in afternoon trade on Wednesday, helped by firm overseas leads, but a strong rupee checked a further rise.
“We did a few deals yesterday (Tuesday), but the market has turned quiet on Wednesday. Traders are enquiring, but aren’t materialising,” said Mr Pinakin Vyas, chief manager-treasury, IndusInd Bank, Mumbai.
The gold contract on the Multi Commodity Exchange made a new record high of Rs 16,784 in afternoon trade, surpassing an earlier high of Rs 16,749 hit in the morning trade.
The rupee reversed its early fall in the afternoon trade on Wednesday as local shares rose by two per cent, while the dollar continued to trade marginally lower against a basket of currencies.
A strong rupee makes the dollar-quoted asset cheaper.
Dealers said that traders were seen comfortable in booking stocks at $1,050 an ounce or Rs 16,200 per 10 grams levels as they seek to replenish stocks for the wedding season, which will last till December.
“Still there is appetite, I have plenty of orders at $1,050-1,060,” said another dealer with a state-owned bank. Meanwhile, spot
silver was also quoted higher at $17.52 an ounce in London.
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