MUMBAI Gold demand in India, the world's biggest buyer of the metal, improved on Friday as prices in the spot market fell to a near four-month low, luring jewellers preparing for the wedding season.
* The yellow metal was trading around 30,638 rupees per 10 grams, the lowest since August 30, in the spot market.
* "Jewellers are active in the market. Investment demand is still weak," said a Mumbai-based dealer with a state-run bank.
* "Gold is trading above 30,000 rupees. If it falls below 30,000 rupees, then we can see a significant improvement in retail demand. Sentiments will change," the dealer said.
* The wedding season will continue till early January and gold is an important gift item at marriages.
* The actively traded gold contract for February delivery on the Multi Commodity Exchange was 0.85 percent higher at 30,740 rupees per 10 grams as of 3:50 p.m., after falling to 30,370 rupees on Thursday night.
* The rupee, which fell nearly 1 percent on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Overseas gold slipped, holding near a four-month low hit in the previous session and on track for its steepest weekly drop since June, as the euro softened and U.S. talks to avoid a fiscal crisis stalled again.
* March silver contract was up 0.98 percent at 57,915 rupees per kg.
(Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)
Trending On Reuters
World financial leaders will agree to calibrate and communicate monetary policy carefully to avoid triggering capital flight, but will not call an expected U.S. rate rise a risk to growth, a draft communique showed. Full Article