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

Healthcare Corruption

REUTERS SHOWCASE

Deal Talk

Deal Talk

Exclusive - Lupin, U.S. firms weigh bids for GSK's mature drugs: sources  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Classifying Banks

Classifying Banks

RBI to start announcing too-big-to-fail banks in Aug 2015  Full Article 

Food Scandal

Food Scandal

Starbucks, Burger King dragged in as China food scandal spreads.  Full Article 

Bigger iPhones

Bigger iPhones

Apple asks suppliers to produce up to 80 mln large-screen iPhones - WSJ.  Full Article 

Wholesale Biz

Wholesale Biz

Wal-Mart adds $102.9 million in Indian wholesale business in June.  Full Article 

Reuters India Mobile

Reuters India Mobile

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