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

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

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