Gold importers in India booked deals for the peak wedding season as prices stayed near their lowest level in a month, eyeing the key parliament vote on entry of foreign super markets and its impact on the rupee.
The wedding season, which started in September and peaked last month, will continue until early January. Gold is an essential part of gifts during the season in India, the world's top gold buyer.
"Reasonable activity is there at these levels. People are eyeing the FDI retail vote in the parliament, which could lead to appreciation in the rupee, if it goes through," said a dealer with a private bullion importing bank in Mumbai,
People are targeting Rs 30,500 level seen during Diwali or in early November, the dealer said.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.16% higher at Rs 31,417 per 10 grams at 0925 GMT, recovering partly from previous session's low of Rs 31,345, the lowest since November 6.
A stronger rupee kept a lid on gains. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Silver for March delivery was 0.69% higher at Rs 62,939 per kg, recovering from previous day's low of Rs 62,425, a level last seen on November 16.
