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

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Literary Giant Dies

Literary Giant Dies

Nobel winner Garcia Marquez, master of magical realism, dies at 87.  Full Article 

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Full Article | Full Coverage 

Insider Trading

Insider Trading

Ex-Goldman director Gupta starts prison term on June 17.  Full Article 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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