Gold slips on stronger rupee

MUMBAI: Gold slipped 1.14% at Rs 26,892 per 10 gm on the Multi Commodity Exchange on Thursday, in tandem with a fall in the overseas market that was exacerbated by a stronger rupee after the Reserve Bank of India announced a 25 basis point cut in the rate at which it lends to banks.

The fall in gold comes at a time when demand from households picks up for the harvest and wedding seasons.

But spokesman of Indian Bullion & Jewellers Association Ketan Shroff said lack of liquidity was crimping demand and consumers at retail level were exchanging old jewellery for new.

Kumar Jain, retail jeweller at Mumbai's Zaveri Bazaar gold market, said demand may pick up because of lower prices.

Reuters cited a metals analyst from MKS Group as saying that the metal could test $1,215-20 an ounce (from the current level of $1,230) in the coming days.