Gold hits another record, demand plunges

MUMBAI Fri Aug 24, 2012 4:03pm IST

1 of 2. The salesman displays gold bangles to a customer at a jewellery showroom in Chennai March 23, 2012.

Credit: Reuters/Babu/Files

Related Topics

MUMBAI (Reuters) - Indian spot gold prices hit a record high on Friday tracking overnight gains in the world market and on a weak rupee, dampening demand and boosting scrap supplies.

* Spot gold prices in Mumbai moved above 31,000 rupees per 10 grams for the first time on Friday morning, although they eased a bit in the afternoon, taking cues from a similar trend on the world market.

* Global gold eased from a 4-1/2 month high but was still poised for its biggest weekly rise in more than two months.

* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.14 percent higher at 30,847 rupees by 0930, after hitting a record high of 30,870 rupees earlier in the day.

* "There is hardly any activity in the spot market. Buyers are hoping prices will come down. They are waiting," said a Mumbai-based dealer with a private bank dealing in bullion.

"Jewellers are cautious. It is difficult for them to judge the impact of price rise and weak monsoon on their festival sales. Besides, they are also getting scrap due to price rise."

* The flow of scrap gold rose as people sold their old jewellery for handsome returns, jewellers said. Gold prices in India have nearly trebled in three years.

* India is facing its second drought in just four years, which can drive up food prices and cut spending power, crimping demand for goods from tractors to gold.

* The rupee, which determines the landed cost of imported gold, eased on Friday.

* Gold imports during the peak demand season of September to December could fall 40 percent on year to 200 tonnes, the head of a trade body said earlier this week.

* Following were the prices in rupees at 1:15 p.m., quoted by HDFC Bank in the spot market:

(Reporting by Rajendra Jadhav; Editing by Jijo Jacob)

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

BACK IN JAIL

REUTERS SHOWCASE

Modi Hurdle

Modi Hurdle

Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle.  Full Article 

USL Board

USL Board

Diageo bars United Breweries from appointing independent director at United Spirits.  Full Article 

Amazon in India

Amazon in India

Amazon to sell packaged food and beverages in India - Economic Times.  Full Article 

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Reuters India Mobile

Reuters India Mobile

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