Gold rises to 1-week high, physical traders absent

Source: in.reuters.com

(Reuters) - Indian gold futures rose to their highest level in a week on Monday due to a weaker rupee, prompting traders in the spot markets to retreat to the sidelines despite next month's peak wedding season demand, dealers said.

* The most-traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.21 percent higher at 28,041 rupees per 10 grams, after hitting 28,084 rupees, its highest since March 5.

* "There are very few deals as gold has recovered after a correction. Volumes were good, when market traded below $1,680 (an ounce)," said Pinakin Vyas, assistant vice-president with IndusInd Bank in Mumbai, a gold importer.

* The local market will wait for the outcome of a Federal Reserve meeting this week and for the Indian budget to be presented on Friday, Vyas said.

* The rupee, which traded weaker, plays an important role in determining the landed cost of the dollar-quoted gold.

* Silver traded lower tracking other industrial metals. Silver for May delivery on the MCX was trading 0.37 percent lower 58,835 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Aradhana Aravindan)
http://in.reuters.com/article/2012/03/12/markets-india-gold-idINDEE82B07J20120312