Gold hits 1-week high; most importers still away
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)
- Tweet this
- Share this
- Digg this
- Odile batters Mexico's Baja resorts, knocks out power to most area |
- Google launches $105 Android One; eyes low-price smartphone boom
- India tightens Vietnam defence, oil ties ahead of China's Xi's visit
- India says to defend China border after standoff ahead of Xi visit
- Nikkei drops as investors await Fed outcome; SoftBank soars
India will decide on ending government control on diesel pricing after elections in two states next month, an oil ministry source said, even though local prices of the fuel are currently higher than the global rates, making a case for a cut in retail prices. Full Article
India says to defend China border after standoff ahead of Xi visit. Full Article