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:

Reuters Showcase

Legal Complaints

Legal Complaints

Government's payday from telecoms auction could be delayed  Full Article 

Running State Banks

Running State Banks

India signals private-sector bosses could run state-owned banks  Full Article 

India Forecast Raised

India Forecast Raised

S&P raises India's GDP forecasts, says it's a bright spot in Asia  Full Article 

StanChart CEO

StanChart CEO

StanChart picks ex-JPMorgan exec Winters as CEO to replace Sands  Full Article 

Wockhardt Plant

Wockhardt Plant

Wockhardt says FDA raises new concerns about Waluj plant  Full Article 

Banking Sector

Banking Sector

State-owned banks' capital needs may be higher - RBI deputy  Full Article 

Shares Sale

Shares Sale

Bharti Airtel says raised $310 mln through share sale in tower unit  Full Article 

Inflation Target

Inflation Target

India should meet RBI inflation target by Jan 2016 - RBI deputy  Full Article 

International Exchange

International Exchange

NSE plans to set up international exchange in Gujarat  Full Article 

Reuters India Mobile

Reuters India Mobile

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