Indian gold edged higher on Thursday, recovering from its lowest level in six weeks, in line with global markets, keeping away physical traders looking for bargains.
At 2:31 pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.26% higher at Rs 29,236 per 10 grams, recovering from the last session's low of Rs 29,142, a level last seen on June 8.
Global gold edged up on Thursday after two straight sessions of losses as the dollar weakened, although investors were unsure of its direction.
The rupee, which traded strong on Thursday, limited the upside.
"The market is waiting for a further correction to buy... people are not getting the benefit of a drop in overseas prices due to a weaker rupee," said a dealer with a private bank in Mumbai.
The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
India's gold imports fell by more than half in the June quarter and could slide by a third over the next three months as prices inflated by a weak rupee and a 4% import duty encourage traders to use scrap, a Reuters poll showed.
Even a below-average monsoon could impact farm incomes. Most of the country's gold imports happen through rural areas.
Silver for September delivery on the MCX also moved higher, following the yellow metal.
Silver on the MCX was 0.44% higher at Rs 52,937 per kg.
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