Stocked Indian gold importers refrain from new deals

MUMBAI Tue Jan 22, 2013 7:41pm IST

Gold bars are displayed at a gold jewellery shop in Chandigarh April 11, 2012. REUTERS/Ajay Verma/Files

Gold bars are displayed at a gold jewellery shop in Chandigarh April 11, 2012.

Credit: Reuters/Ajay Verma/Files

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, refrained from buying fresh deals, as they struggle to clear their old stock with duty hikes drying up demand.

Gold for February delivery on the Multi Commodity Exchange (MCX) was almost steady at 30,762 rupees per 10 grams by 7:41 p.m.

"The market is totally calm due to duty hike and rupee depreciation," said a dealer with a private bullion-importing bank in Mumbai, adding huge stocks have been piled up in the market in early January in anticipation of a duty hike.

"They now have an advantage of 2 percent due to the duty hike," the dealer said.

India on Monday hiked import duty on processed gold to 6 percent from 4 percent to curb purchases and rein in a ballooning fiscal deficit. On Tuesday, it more than doubled the duty on gold dore bars and ores.

The rupee, which weakened on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas market, gold prices rose above $1,690 per ounce as better-than-expected German economic data lifted the euro versus the dollar, but gains were capped by strong chart resistance and losses in European stocks.

(Reporting by Siddesh Mayenkar; Editing by Gopakumar Warrier)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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