Gold jumps to two-week high, speculative buying seen

MUMBAI Wed Jan 2, 2013 3:57pm IST

Gold bars are displayed at a gold jewellery shop in Chandigarh May 8, 2012. REUTERS/Ajay Verma/Files

Gold bars are displayed at a gold jewellery shop in Chandigarh May 8, 2012.

Credit: Reuters/Ajay Verma/Files

Related Topics

MUMBAI (Reuters) - Indian gold futures extended gains to their highest level in two weeks after the finance minister hinted at making imports of the yellow metal expensive, triggering speculative buying from physical traders on rumours of a custom duty hike.

* Worried by ballooning current account deficit, the minister hinted at making gold shipments more expensive, saying it was under the government's consideration, but he did not elaborate on the types of measures.

* The most-active gold for February delivery on the Multi Commodity Exchange (MCX) hit a high of 31,191 rupees per 10 grams, a level last seen on December 18. It was 0.35 percent higher at 30,997 rupees as of 0945 GMT.

* "The comment (from the finance minister) added more interest to the physical market," said a dealer with a private bullion importing bank in Mumbai, adding there were a few deals on a stronger rupee in the morning.

* A firm rupee, which plays an important role in determining the landed cost of the dollar-denominated yellow metal, kept the upside limited.

* In the overseas market, gold rebounded from intraday lows after the U.S. Congress finally passed a bill that avoids tax hikes and spending cuts worth $600 billion, but the temporary reprieve drew muted reaction from bullion investors in Asia.

* Silver also jumped to its highest level in a week. Silver for March delivery touched a high of 58,440 rupees, its highest since December 27.

* The following were the prices of gold and silver in rupees at 1:15 p.m. in the spot market, quoted by HDFC Bank:

(Reporting by Siddesh Mayenkar; 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

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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