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:

REUTERS EXCLUSIVE

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Jim O’Neill Interview

Jim O’Neill Interview

'India can become world’s fifth-largest economy by decade’s end'  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Ola's Expansion Drive

Ola's Expansion Drive

Taxi group Ola steps up expansion drive  Full Article 

Bharti-China Mobile

Bharti-China Mobile

Bharti Airtel, China Mobile to collaborate on 4G  Full Article 

Suzlon Energy

Suzlon Energy

Suzlon expects to turn profitable in fiscal 2016: chairman   Full Article 

Eicher Motors Stake

Eicher Motors Stake

Volvo selling up to $300 mln worth of Eicher shares  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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