MUMBAI Gold importers in India, the world's biggest buyer of the metal, kept to the sidelines after the harvest festival as prices edged higher in line with global markets and a weaker rupee, traders said on Tuesday.
* The harvest festival in India is a period during which demand for gold from rural areas goes up due to higher disposable income from sale of agricultural goods. Weddings are also slated to begin later in the month and continue until May.
* "Buying is still dull, and there is no real demand," said a dealer with a bullion importing private bank in Mumbai.
* At 3:16 p.m., the most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.34 percent higher at 30,845 rupees per 10 grams.
* Global gold rose 1 percent to top $1,683 per ounce, taking a cue from Federal Reserve comments late Monday that suggested the central bank was in no hurry to withdraw monetary stimulus. The rupee, which traded weaker on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Silver for March delivery on the MCX was 0.84 percent higher at 59,235 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)
Trending On Reuters
For years Indian businesses have lobbied for a nationwide sales tax, hoping to replace a chaotic structure that inflates costs and halts their trucks at state borders for duty payments, and to unify the country into one of the world's largest single markets. But after political compromises that finally got a goods and services tax (GST) bill before parliament, they have turned wary. Full Article
India's $100 billion solar push draws foreign firms as locals take backseat Full Article