MCX Gold News, MCX Gold Today at 20 Dec 2012

Asia's physical buying picked up after gold dropped to its lowest in nearly four months earlier this week, while some market participants were concerned about a potential supply shortfall next week as refineries close for holidays.

Spot gold dropped to $1,661.01 an ounce on Tuesday, its lowest since Aug. 31, but has recovered some ground since then to trade at $1,667.41 on Thursday.

The price slide triggered some buying interest, but the uncertainty in market direction kept many on the sidelines, especially as the year end draws near.

In Japan, gold discount narrowed to as low as 30 cents, from 50 cents a week earlier, as supply decreased on slower supply from refineries, but the year-end holiday could lead to less demand from industrial users, a Tokyo-based trader said.

The weaker yen inflated local gold prices, which did little to inspire buyers. The dollar had gained about half a percent against the yen this week, and more than 1 percent so far this month. [Via]

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