India gold demand rises on restocking

MUMBAI Mon Dec 24, 2012 4:32pm IST

The salesman displays gold bangles to a customer at a jewellery showroom in Chennai March 23, 2012. REUTERS/Babu/Files

The salesman displays gold bangles to a customer at a jewellery showroom in Chennai March 23, 2012.

Credit: Reuters/Babu/Files

Related Topics

MUMBAI (Reuters) - Gold demand in India, the world's biggest buyer of the metal, picked up on Monday as buyers were scrambling to purchase limited stocks available with local banks after most overseas sellers left for the Christmas vacation.

* The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.26 percent lower at 30,832 rupees per 10 grams as of 4:01 p.m.

* "Demand is good. Buyers are placing orders for limited stocks with banks. They (buyers) know the supply situation will remain tight for the next few days. Overseas suppliers are going on leave," said a Mumbai-based dealer with a state-run bank.

* "Buyers are also comfortable with prices. They are not hesitating in making deals below 31,000 rupees. Jewellers are restocking," the dealer said.

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

* Overseas gold ticked up a little in thin pre-holiday trade on Monday as equities regained some strength, but prices stayed near their weakest in four months as the U.S. fiscal stalemate drove investors to the sidelines.

* The March silver contract on the MCX was down 0.13 percent at 58,087 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

COAL SCAM

REUTERS SHOWCASE

Reliance Projects

Reliance Projects

Exclusive: Reliance plans $13 billion projects including new refinery.  Full Article 

Pharma Sector

Pharma Sector

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

Low Stocks

Low Stocks

Indian power station coal stocks lowest since 2012 blackouts.  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Google Drones

Google Drones

Google is testing unmanned drones to deliver anything from dog food to medicine.  Video 

#RiceBucketChallenge

#RiceBucketChallenge

In India, rice replaces ice in bucket challenge.  Full Article 

Reuters India Mobile

Reuters India Mobile

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