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:

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

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