Gold importers in India, the biggest buyers of the metal, moved to the sidelines as the depreciating rupee led to an increase in prices of the metal, which offset falling overseas markets. The rupee, which touched its lowest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
The festival season, traditionally a time to buy gold, is now underway in India and will peak with Dhanteras and Diwali next month. Weddings also take place during this period. The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.07 per cent higher at Rs 31,397 per 10 g, helped by a weaker rupee.
