Gold buying slows as prices move sideways
MUMBAI (Reuters) - Gold buying by traders in India, the world's biggest consumer of the metal, slowed as prices were stuck in a range for a third day in a row after overseas leads outweighed a stronger rupee back home.
* The wedding season will re-start in India by mid-January and will continue until May. Festivals will also take place during this period.
* The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.18 percent lower at 30,918 rupees per 10 grams at 2:44 p.m., after trading in a tight range of 30,821-31,058 rupees in the previous three sessions.
* "Market has slowed as everyone is waiting for correction," said Ketan Shroff, director, Mumbai-based wholesaler Penta Gold, adding "If there is correction, people will be able to digest the price post the duty hike."
* India could raise the import duty on the yellow metal from the current 4 percent, as part of measures to contain a record high current account deficit. The central bank has also recommended limits on value and volumes of gold imports.
* Overseas gold held around $1,660 an ounce on Wednesday as investors awaited policy decisions by central banks in Japan and the euro zone.
* The rupee, which traded stronger, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Premiums stayed steady at $2-3 an ounce on London prices, a level last seen in November last year.
* March silver edged 0.17 percent lower to 58,369 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)
- Tweet this
- Share this
- Digg this
- U.S. plans to arm Iraq's Sunni tribesmen with AK-47s, RPGs, mortars
- China building South China Sea island big enough for airstrip - report
- Bighorn sheep escapes Los Angeles Zoo, dies after car strikes it
- Apple $450 mln e-book settlement gets final court approval
- India approves $2.6 bln mounted gun purchase - official
India approved on Saturday the purchase of 814 mounted gun systems for the army at a cost of 157.5 billion rupees ($2.55 billion), a defence ministry spokesman said. Full Article