Gold demand moderates; strong rupee checks prices

MUMBAI Fri Dec 28, 2012 5:49pm IST

1 of 2. 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, was moderate on Friday as jewellers replenished inventory for festivals and the wedding season, but retail and investment demand remained sluggish.

The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.32 percent lower at 30,725 rupees per 10 grams as of 5:48 p.m.

"A stronger rupee is capping the upside in gold prices. Jewellers are buying. They think it's a good time to buy, but retail demand is weak. People are in holiday mood due to year-end," said a Mumbai-based dealer with a state-run bank.

Demand in Tamil Nadu remained strong as people in the state will celebrate Pongal in mid-January.

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

Overseas gold gave up early gains and ticked down ahead of talks to prevent the United States from plunging off a "fiscal cliff" of tax increases and spending cuts, but prices remained on track for their first weekly gain in a month.

The March silver contract on the MCX dropped 0.60 percent to 57,824 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

Drug Pricing

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Reuters India Mobile

Reuters India Mobile

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