Gold prices rise on weaker rupee
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)
- Tweet this
- Share this
- Digg this
- UPDATE 11-Total CEO de Margerie killed in Moscow as jet hits snow plough
- Indiana police charge suspect who may have killed for decades
- Pistorius starts five-year term for killing Reeva Steenkamp
- Total CEO de Margerie killed in Moscow as jet hits snow plough
- UPDATE 3-Ocwen shares slide after NY finds backdated foreclosure letters
As well as making the lives of millions of middle class Indians easier, the sharp drop in Brent crude prices since June is a boon for Prime Minister Narendra Modi in his fight to revive an economy growing at its slowest rate since the 1980s. Full Article