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

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Reuters India Mobile

Reuters India Mobile

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