Gold prices drop to four-month low

MUMBAI Fri Dec 21, 2012 6:57pm IST

A saleswoman displays a gold necklace at a jewellery showroom in Kolkata August 1, 2011. REUTERS/Rupak De Chowdhuri/Files

A saleswoman displays a gold necklace at a jewellery showroom in Kolkata August 1, 2011.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

MUMBAI (Reuters) - 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)

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

Iron Ore Mining

REUTERS SHOWCASE

Tracking Markets

Tracking Markets

Sensex, Nifty surge to record high; Sesa gains  Full Article 

TCS-Mitsubishi

TCS-Mitsubishi

TCS, Mitsubishi to form software services company  Full Article 

Telecom Sector

Telecom Sector

RIL telecoms unit in tower lease pact with ATC  Full Article 

Japanese Economy

Japanese Economy

Japan exports growth slows sharply, keeps pressure on BOJ to act  Full Article 

A Tough Sell

A Tough Sell

Insurance against a China financial crisis  Full Article 

Tyre Debris

Tyre Debris

Bangalore-bound Malaysia Airlines plane turns back after tyre burst on takeoff  Full Article 

Digital Currency

Digital Currency

At Mt. Gox bitcoin hub, 'geek' CEO sought both control and escape  Full Article 

Reuters India Mobile

Reuters India Mobile

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