Weak rupee absorbs fall in international gold prices

MUMBAI: The rupee's fall to a 20-month low against the dollar at closing on Thursday offset a $9 an ounce drop in international gold price.

While gold fell to $1,181.2 an ounce (31.10 gms) in evening trade (India time) on US bourse Comex, the local MCX contract traded flat at Rs 26,907 per 10 gms. The rupee fell 1.1% to 64.24 a dollar, denying the benefit of lower international price to local gold buyers.

Gold fell ahead of Friday’s release of US non-farm payrolls data. The median estimate, according to Bloomberg, is for an addition of 225,000 jobs in the past month.

If the actual figure is below this, gold could rise to $1200. But if it beats the estimate, a break below $1,170 cannot be ruled out, Ketan Shroff, spokesperson for the India Bullion & Jewellers Association (IBJA) told ET earlier.