Gold hits 1-week high; most importers still away

MUMBAI Mon Dec 10, 2012 2:05pm IST

A salesman arranges gold bracelets inside a jewellery showroom in Jaipur, January 12, 2009. REUTERS/Vijay Mathur/Files

A salesman arranges gold bracelets inside a jewellery showroom in Jaipur, January 12, 2009.

Credit: Reuters/Vijay Mathur/Files

Related Topics

MUMBAI (Reuters) - Indian gold extended gains for a fourth session to revisit its highest level in nearly a week, with most importers refraining from deals in the middle of the wedding season, eyeing the U.S. Federal Reserve meeting starting Tuesday.

* The wedding season, which started in September and peaked last month, continues until early January. Gold is an essential gift item during this season in India, the world's biggest consumer of the metal.

* "Just need based covering is going on in the physical market... market is waiting for FOMC outcome for direction," said a dealer with a private bullion importing bank in Mumbai.

* The actively-traded gold for February delivery on the Multi Commodity Exchange (MCX) was 0.17 percent higher at 31,378 rupees per 10 grams, after hitting a high of 31,408 rupees, the highest since December 5, following similar leads in global markets.

* Investors are also watching the progress in the U.S. fiscal talks and potential political uproar in Italy, which could jolt the market where liquidity is starting to thin as traders close books before the end of the year. The U.S. Federal Reserve policy meeting is scheduled on Tuesday and Wednesday.

* The rupee, which traded stronger, kept the rise in prices limited. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Silver for March delivery on the MCX was 0.57 percent higher at 62,938 rupees per kg, after hitting a crest at 62,975 rupees, a level not seen after November 30. (Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)

FILED UNDER:

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Social Media

Social Media

Twitter to start tracking users' mobile apps  Full Article 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Forever21 in India

Forever21 in India

Forever21 sets sights on Indian cities, but please hold the hot pants  Full Article 

Japan Economy

Japan Economy

Japan inflation slows in October, output and spending show signs of recovery  Full Article 

Reuters India Mobile

Reuters India Mobile

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