MUMBAI (Thomson Financial) - India spot gold closed marginally higher, and
above the key psychological 13,000-rupee mark, led by a weaker rupee.
In London, gold fell by over $13 to trade at $930.60 per ounce as the
greenback gained after European Central Bank president Trichet said that the
Eurozone growth outlook is subject to downside risk.
The Indian rupee traded near 15-month lows of 43.50 against the dollar as a
stock market sell-off and record oil prices weighed on the currency.
Most of India's gold is imported and a weak rupee makes imports expensive.
"Retail buying interest is expected to remain poor at least till Aug. 15,"
said Bhargav Vaidya, proprietor of India-based bullion trading house B.N. Vaidya
& Associates, adding that there could be some wholesale buying if prices correct
from here on.
Vaidya expects gold prices to test $890 an ounce levels in the next 10 days.
India's lean season lasts until August, after which a series of festivals
and the marriage season spurs demand for the yellow metal.
In Mumbai, gold of 0.995 purity closed 150 rupees higher at 13,135 rupees
per 10 grams and gold of 0.999 purity closed 155 rupees higher at 13,195 rupees
per 10 grams.
Silver of 0.999 purity closed 235 rupees higher at 25,315 rupees per
kilogram.
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