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

India Economy

REUTERS SHOWCASE

Reliance Projects

Reliance Projects

Exclusive: Reliance plans $13 billion projects including new refinery.  Full Article 

Chopper Deal

Chopper Deal

India nears $2.5 billion deal for Boeing military helicopters.  Full Article 

Coal Scam

Coal Scam

CBI drops coal scam case against Kumar Mangalam Birla.  Full Article 

Low Stocks

Low Stocks

Indian power station coal stocks lowest since 2012 blackouts.  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Google Drones

Google Drones

Google is testing unmanned drones to deliver anything from dog food to medicine.  Video 

#RiceBucketChallenge

#RiceBucketChallenge

In India, rice replaces ice in bucket challenge.  Full Article 

Reuters India Mobile

Reuters India Mobile

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