Gold traders at bay due to weak rupee

MUMBAI Thu May 3, 2012 3:20pm IST

A woman checks a gold necklace inside a jewellery showroom in Hyderabad April 11, 2012. REUTERS/Krishnendu Halder

A woman checks a gold necklace inside a jewellery showroom in Hyderabad April 11, 2012.

Credit: Reuters/Krishnendu Halder

Related Topics

MUMBAI (Reuters) - Gold traders in India, the world's biggest buyer of bullion, were on the sidelines on Thursday as a weak rupee, which hit its lowest level in four months, outweighed weak sentiment in the overseas markets.

* The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.13 percent 29,230 rupees per 10 grams helped by a weaker rupee.

* "Sales are not according to expectations because of the rupee, and this situation will continue," said Harshad Ajmera, proprietor of JJ Gold House in Kolkata.

* Most jewellers are fully stocked after lower-than-expected sales on auspicious Akshaya Tritiya, which fell on April 24. Sales fell 50 percent to 10 tonnes on the festival day.

* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* In the overseas market, gold was under pressure after data from both sides of the Atlantic fuelled concerns about global growth.

* Investors will closely watch a meeting by the European Central Bank later in the day. The ECB is expected to hold fire despite calls to restart its bond-buying programme to shield austerity-hit Spain from further pain.

(Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

China iPhone Sale

China iPhone Sale

China regulator approves Apple's iPhone 6 for sale in China  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage