Indian gold eases marginally on global cues

NEW DELHI Wed Nov 21, 2012 6:29pm IST

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012. REUTERS/Ajay Verma

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012.

Credit: Reuters/Ajay Verma

Related Topics

NEW DELHI (Reuters) - Gold prices in India, the world's biggest buyer of bullion, drifted lower on Wednesday on global cues and as the rupee retreated from two-month lows touched against the dollar earlier in the day.

At 1213 GMT, the most active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.06 percent lower at 31,728 rupees per 10 grams.

The rupee, which closed little changed against the dollar, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

"Overall, the market is bullish. But there has been some easing of demand compared with the pre-Diwali period," said a dealer with a state-run bank.

The run up to Diwali - the festival of lights - which India celebrated on November 13, coupled with the wedding season demand had pushed up prices in the recent past. The wedding season demand will taper off in December.

Overseas gold inched lower on Wednesday as the dollar firmed after Greece's lenders failed to strike a debt deal for the country, although sentiment for bullion remains supported by expectation of continuous monetary easing by central banks.

Silver bucked the trend. Silver for December delivery on the MCX was 0.15 percent higher at 61,630 rupees per kg.

(Reporting by Malini Menon; Editing by Prateek Chatterjee)

FILED UNDER:

Surprise Rate Cut

Reuters Showcase

Insurance Bill

Insurance Bill

Opposition support bolsters prospects for insurance reforms  Full Article 

SBI Share Sale

SBI Share Sale

SBI's up to $2.4 billion share sale likely by end April - sources   Full Article 

Eicher Share Sale

Eicher Share Sale

Truck maker Volvo sells shares in Eicher Motors  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Monsoon Season

Monsoon Season

Exclusive - India expects better monsoon rains this year  Full Article 

Services Growth

Services Growth

Services growth at eight-month high in Feb - HSBC PMI  Full Article 

'India's Daughter'

'India's Daughter'

Documentary on 2012 Delhi gang rape banned in India  Full Article 

Capex Slashed

Capex Slashed

Cairn India slashes 2015-16 capex on falling crude   Full Article 

Strong Start

Strong Start

Airwaves auction off to strong start, bids near $10 billion.  Full Article 

Reuters India Mobile

Reuters India Mobile

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