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

Market Eye

REUTERS SHOWCASE

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Photo

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Mircosoft Results

Microsoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Photo

Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

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