Gold prices at one-month low; importers active

MUMBAI Fri Jan 18, 2013 2:59pm IST

A worker counts gold bangles at a jewellery-making workshop in Jammu October 17, 2011. REUTERS/Mukesh Gupta/Files

A worker counts gold bangles at a jewellery-making workshop in Jammu October 17, 2011.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

MUMBAI (Reuters) - Gold prices fell further on Friday to stay near their lowest level in a month, weighed by a stronger rupee amid flat overseas markets, prompting importers to stock up the yellow metal for the wedding season. Silver also declined.

* The wedding season in India, the world's biggest buyer of gold, started this week and will continue until May. Festivals also take place during this period.

* The most-active gold for February delivery on the Multi Commodity Exchange (MCX) hit a low of 30,610 rupees per 10 grams, a level last seen on December 20. The contract was trading 0.28 percent lower at 30,646 rupees at 2:57 p.m.

* "Today morning, rupee gave good support for bullion customers ... People who have stocked are eyeing the benefit of customs duty hike," said a dealer with a private bank dealing in bullion in Mumbai.

* India witnessed a huge surge in imports of gold in the first week of January, when the finance minister hinted at a hike in import duty from the current 4 percent. The rupee has been appreciating since January 8 on the back of a slew of measures taken by the government, such as partial de-regulation of diesel prices.

* A strong rupee makes the dollar-quoted yellow metal cheaper for local holders.

* "We are likely to see the same challenges facing the Indian market, with local buyers at the mercy of the rupee's direction against the dollar, and amid the constant threat of government intervention," said Joni Teves from UBS.

* Imports may fall by 25 percent this year if, as expected, the government again raises the duty on the precious metal, a trade body head said on Thursday.

* Silver for March delivery was 0.33 percent lower at 59,415 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)

FILED UNDER:

"India's Daughter"

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

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