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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Monetary Policy

REUTERS SHOWCASE

Monetary Policy

Monetary Policy

Fed renews zero rate pledge, but hints at steeper rate hike path.  Full Article 

Eyeing Stocks

Eyeing Stocks

Interview - EPFO chief urges green light to buy stocks  Full Article 

Stimulus Reports

Stimulus Reports

China cenbank injects $81 bln into major banks to support economy - reports  Full Article 

Ranbaxy Investigation

Ranbaxy Investigation

Ranbaxy says U.S. authorities seek information on pricing data.  Full Article 

E-Commerce

E-Commerce

Tiger Global leads $60 million investment in Quikr.  Full Article 

Monsoon Update

Monsoon Update

Delayed retreat of monsoon rains to start this weekend  Full Article 

Financing Deal

Financing Deal

IndiGo agrees $2.6 billion aircraft finance deal with China's ICBC  Full Article 

Grim Outlook

Grim Outlook

Sony deepens loss estimate on struggling smartphone business  Full Article 

Reuters India Mobile

Reuters India Mobile

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