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

Economy

REUTERS SHOWCASE

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Power Outage

Power Outage

India may face blackouts as coal shortage cuts power output  Full Article 

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Rare Earth Output

Rare Earth Output

India to chip in with 5 pct of global rare earth output  Full Article 

Reuters India Mobile

Reuters India Mobile

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