Gold prices fall 1 percent on MCX; silver at 4-month low

MUMBAI Fri Jan 4, 2013 3:34pm IST

A woman holds gold bangles at a jewellery shop in Kolkata October 14, 2009. REUTERS/Jayanta Shaw/Files

A woman holds gold bangles at a jewellery shop in Kolkata October 14, 2009.

Credit: Reuters/Jayanta Shaw/Files

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, took advantage of a near 1 percent fall in prices on Friday to stock up amid continued talk of an import duty hike.

The actively traded gold for February delivery on the Multi Commodity Exchange (MCX) was 0.80 percent lower at 30,698 rupees per 10 grams at 3:14 p.m.

"Activity is good due to a correction in prices, which was anticipated. Few people are trying to stock up at these levels in case a customs duty hike comes in," said a dealer with a private bullion importing bank.

A strong dollar overseas also contributed to the fall in the yellow metal.

Worried by ballooning current account deficit, the finance minister hinted at making gold shipments more expensive, saying it was under consideration, but did not elaborate on the type of measures. India has a 4 percent import duty on gold.

The RBI also recommended restrictions on value and volumes on importing banks and agencies.

Silver fell the most in more than four months. The March delivery contract on the MCX fell to 56,841 rupees, its lowest since August 31. It was 2.96 percent lower at 56,917 rupees per kg as of 3:15 p.m.

(Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Article 

Indians in Iraq

Indians in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Banking Sector

Banking Sector

After record deal, more India bank takeovers on cards  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Cricket Tragedy

Cricket Tragedy

Clarke breaks down giving heartfelt Hughes tribute  Full Article 

Nigeria Violence

Nigeria Violence

Bombs, gunfire kill 81 at crowded mosque in Nigeria's Kano  Full Article 

Movie Review

Movie Review

D’Silva's “Ungli” just skims the surface  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

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