Indian Gold Buying Picks Up Due To Stronger Rupee, Wedding Season

Higher gold prices in U.S. dollars is no longer deterring Indian wholesale buyers, thanks to a stronger rupee and the middle of the wedding season, according to an Economic Times report. Some stockists were canny enough to buy around $1,110.

"Demand is good as the rupee has come down, even prices are on the lower side," said a dealer with a state-run, bullion-dealing bank in Mumbai.

"They are all domestic indents, I covered about 200 kgs at mostly $1,126 (an ounce) level, even for last week buying was good. We did about 300-350 kgs at about $1,110-1,111," said another dealer with a bullion-dealing private bank.

Wedding-season-related demand may continue if the rupee holds up - and may continue period if stockists' inventory has been depleted by too much retail demand meeting too much restocking holdback.