Gold demand drops as price gains on rupee

MUMBAI Thu Dec 20, 2012 5:25pm IST

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

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

Credit: Reuters/Ajay Verma/Files

Related Topics

MUMBAI (Reuters) - Gold demand in India, the world's biggest buyer of the metal, moderated on Thursday as local prices rose chasing gains in the world market and on a weak rupee.

The actively traded gold contract for February delivery on Multi Commodity Exchange was 0.23 percent higher at 30,890 rupees per 10 grams as of 4.44 p.m.

"Demand is slightly weak compared with yesterday. Jewellers are cautious. Major festivals are over. They are waiting for price correction," said a Mumbai-based dealer with a bullion importing state-run bank.

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

In the overseas market, gold edged back towards $1,670 an ounce on Thursday, recovering from this week's 3-1/2 month low as physical buyers returned to the market.

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

March silver contract was up 0.06 percent lower at 59,645 rupees per kg.

(Reporting by Rajendra Jadhav; Editing by G.Ram Mohan)

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

REUTERS SHOWCASE

India-WTO Standoff

India-WTO Standoff

India threatens to derail WTO deal, prompts angry U.S. rebuke  Full Article 

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

IPO Probe Ends

IPO Probe Ends

Facebook says SEC's IPO probe ends, extending WhatsApp closing date  Full Article 

World Stocks

World Stocks

Goldman Sachs downgrades stocks to neutral for short term  Full Article 

Disappointing Results

Disappointing Results

Amazon's far-reaching ambitions, lack of profits, unnerve investors  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Market Eye

Market Eye

Nifty retreats from record highs on profit taking.  Full Article 

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Reuters India Mobile

Reuters India Mobile

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