Mumbai: Gold prices extended their fall for a third day on Monday, triggering a slight pick-up in physical offtake in the middle of the wedding season that will last till December-end, dealers said.
"Demand in terms of volumes has been good since morning, I filled in orders at USD 1,160-1,165 (an ounce) (or 17,500 rupees per 10 grams)," said a dealer with a private bank in Mumbai.
The benchmark February gold contract extended losses for a third day to its one-week low of 17,301 rupees, a level last seen on Nov. 30.
The contract last traded at 17,338 rupees per 10 grams, down 1.40 percent at 2:10 p.m., after losing 3.3 percent in the last two sessions.
"I have plenty of orders in the range of USD 1,140-1,145 an ounce," said another dealer with a state-run bullion dealing bank.
However, the weak Rupee, which makes the dollar-quoted asset expensive, weighed on sentiment, traders said.
The Rupee dropped tracking the dollar's gains against major units post the non-farm payroll data while a seesawing domestic sharemarket failed to provide clarity on foreign fund flows.
Bureau Report
First Published: Monday, December 07, 2009, 15:33