Gold prices rise on weaker rupee

MUMBAI Mon Jan 7, 2013 4:17pm IST

A salesman arranges a gold necklace inside a gold jewellery showroom in Kochi April 16, 2012. REUTERS/Sivaram V/Files

A salesman arranges a gold necklace inside a gold jewellery showroom in Kochi April 16, 2012.

Credit: Reuters/Sivaram V/Files

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, retreated as a weaker rupee helped the yellow metal to extend gains for a second day.

The actively traded gold for February delivery on the Multi Commodity Exchange was 0.24 percent higher at 30,982 rupees per 10 grams by 2:54 p.m., after gaining 0.35 percent in the previous session.

"Deals are there but volumes are not that great as the rupee has weakened," said a dealer with a private bullion importing bank. "Last week there were good consignments due to the talk of import duty."

The rupee, which weakened past 55 per dollar, plays an important role in determining the landed cost of dollar-quoted 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 central bank also recommended restrictions on value and volumes on importing banks and agencies.

Overseas gold inched up off the previous session's four-month low, boosted by lacklustre U.S. jobs data which supported expectations for continued monetary easing from the Federal Reserve.

Silver for March also edged 0.19 percent higher to 58,095 rupees per kg.

(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 EXCLUSIVE

REUTERS SHOWCASE

Modi In U.S.

Modi In U.S.

Obama, Modi work to deepen improving U.S.-India ties  Full Article | Full Coverage 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Asia & Europe

Asia & Europe

Weak demand hits factory activity across Asia, Europe  Full Article 

Reuters India Mobile

Reuters India Mobile

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