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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Sino-Indian Ties

REUTERS SHOWCASE

India-China Relations

India-China Relations

India and China look to put knotty relations on new footing.  Full Article 

Importing Iron Ore

Importing Iron Ore

As mining curbs bite, India offers market to glut-hit iron ore.  Full Article 

Lower Output

Lower Output

IOC cuts refinery output as rains hit fuel demand - source.  Full Article 

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Farming and Technology

Farming and Technology

Climate smart farmers get tech savvy to save India's bread basket.  Full Article 

Rajan Speaks

Rajan Speaks

RBI chief Rajan says limiting reliance on foreign debt.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Debt & Equity Deal

Debt & Equity Deal

KKR to lend $175 million to GMR Infrastructure - source.  Full Article 

Preparing for IPO

Preparing for IPO

Alibaba boosts IPO as demand strengthens.  Full Article 

Reuters India Mobile

Reuters India Mobile

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