Gold hits peak again, importers not keen to stock

Indian gold extended gains on Wednesday afternoon to hit another record high powered by strong overseas markets, with importers unwilling to stock the yellow metal ahead of festivals next week.

COMEX gold for December delivery was 0.69% higher at $1,746.8 an ounce. A firm rupee limited the upside. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

The most-active gold contract for October delivery on the Multi Commodity Exchange (MCX) struck its peak of Rs 32,105  per 10 grams. At 0947 GMT it was up 0.44% at Rs 32,017.

Buying is yet to pick up in full strength, said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler in Kolkata.

India, the world's biggest buyer of bullion, celebrates Ganesh Chaturthi next week and festivals will continue till November.

Silver also rose more than 1% to hit another contract high.

Silver for December delivery on the MCX was 1.05% higher at Rs 64,471 per kg, after hitting a record high of Rs 64,755.