Gold prices edge lower on rupee, global cues

NEW DELHI Thu Nov 15, 2012 3:35pm IST

Gold biscuits are displayed inside a jewellery showroom in the southern Indian city of Hyderabad April 11, 2012. REUTERS/Krishnendu Halder/Files

Gold biscuits are displayed inside a jewellery showroom in the southern Indian city of Hyderabad April 11, 2012.

Credit: Reuters/Krishnendu Halder/Files

Related Topics

NEW DELHI (Reuters) - Gold prices in India, the world's biggest buyer of bullion, nudged down on Thursday mirroring global prices and as the rupee regained some poise against the dollar, but dealers expect local prices to remain firm given the wedding season.

* At 2:14 p.m., the most active gold for December delivery on the Multi Commodity Exchange (MCX) was down 0.36 percent at 31,632 rupees per 10 grams, after hitting a high of 31,742 rupees.

* The rupee, which recovered from the day's low of 55.08 on greenback sales from foreign banks after two consecutive market holidays, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Gold has edged lower today mainly because the rupee has come off the day's low," said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in Kolkata.

"I expect local prices to top 32,000 rupees by end-December," Ajmera said, citing brisk demand.

* Indian markets were closed for Diwali, the festival of lights, on Tuesday and for another local festival on Wednesday. The beginning of the week marked Dhanteras, India's largest gold buying festival.

* The wedding season is underway in India and will taper off in December.

* Overseas gold slipped on Thursday as share prices fell, but tensions in the Middle East and worries about the U.S. "fiscal cliff" are expected to boost the metal's safe-haven appeal and spur buying from investors.

* Silver also moved lower, tracking gold prices.

* Silver for December delivery on the MCX was down 0.48 percent at 61,074 rupees per kg.

(Reporting by Malini Menon; 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 to Investors

REUTERS SHOWCASE

Health Reforms

Health Reforms

India reviews state hospitals to end widespread corruption.  Full Article 

New Rules

New Rules

RBI says all companies must apply 2-step payments for credit cards.  Full Article 

Still Popular

Still Popular

Indians keep faith with Modi, best hope for economy - poll.  Full Article 

New Adviser

New Adviser

Arvind Subramanian likely to be chief econ adviser.  Full Article 

Pricing Mechanism

Pricing Mechanism

Govt sets up a four-member panel to re-examine gas pricing.  Full Article 

Royalty Rates

Royalty Rates

India to hike iron ore royalty, miners may struggle to pass on extra cost.  Full Article 

Diesel Deregulation

Diesel Deregulation

Oil ministry to seek Cabinet nod on diesel deregulation - sources  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

Helping Regional Mills

Helping Regional Mills

Govt raises sugar import duty to 25 pct from 15 pct.  Full Article 

Reuters India Mobile

Reuters India Mobile

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