Gold prices at lowest level in two weeks

MUMBAI Wed Dec 19, 2012 3:01pm IST

A salesman arranges a gold necklace inside a gold jewellery showroom in Kochi April 16, 2012. REUTERS/Sivaram V/Files

A salesman arranges a gold necklace inside a gold jewellery showroom in Kochi April 16, 2012.

Credit: Reuters/Sivaram V/Files

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, continued picking up bargains for weddings as a stronger rupee weighed on the yellow metal, extending losses to the lowest level in nearly two weeks.

The wedding season will continue till early January and gold is an important gift item at marriages.

The actively traded gold for February delivery on the Multi Commodity Exchange was 0.52 percent lower at 30,894 rupees per 10 grams at 0909 GMT, after hitting a low of 30,890 rupees, its lowest since December 6.

"The market is very active since yesterday evening when gold prices started dropping," said a dealer with a bullion importing private bank in Mumbai, adding: "Today is a busy day for us."

The rupee, which inched higher on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas market, however, gold bounced back on a weaker dollar, but prices were still in sight of an almost four-month low.

Silver also fell to its lowest in two weeks following the yellow metal.

March silver also extended losses to trade 0.31 percent lower at 60,500 rupees per kg, after hitting a low of 60,367 rupees, a level last seen on December 5.

(Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)

FILED UNDER:

Reuters Showcase

IS Claim

IS Claim

Islamic State says beheads second Japanese hostage.  Full Article 

Ukraine Crisis

Ukraine Crisis

Death toll mounts in Ukraine fighting after peace talks fail.  Full Article 

Fifth Title

Fifth Title

Djokovic reigns supreme at Australian Open.  Full Article 

Journalist Freed

Journalist Freed

Jailed Al Jazeera journalist Peter Greste leaves Egypt for Australia.  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut.  Full Article 

Doubles Title

Doubles Title

Hingis wins Australian Open mixed doubles title with Paes.  Full Article 

Houston's Daughter

Houston's Daughter

Bobbi Kristina Brown revived after found unresponsive in tub  Full Article 

Supply Glut

Supply Glut

Sugar mills seek govt help to dispose of supply surplus.  Full Article 

Reuters India Mobile

Reuters India Mobile

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