Gold importers struggle to sell discounted stocks

MUMBAI Thu Jan 24, 2013 2:54pm IST

A goldsmith holds finished gold bangles at a workshop in Kolkata January 16, 2013. REUTERS/Rupak De Chowdhuri/Files

A goldsmith holds finished gold bangles at a workshop in Kolkata January 16, 2013.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, struggled to clear their old stock even at a discount to market price while consumers digested a 50 percent hike in import tax.

* Sales have been declining in a wedding season, which will continue till May, while festivals are also scheduled during this period. However, over the longer term, industry officials say gold demand is unlikely to waiver.

* "Traders had stocked before the tax in anticipation of demand, but now the market has slowed," said Lokesh Kumar Agarwal, chairman of Lucknow-based wholesaler Brijwasi Bullion and Jewellers, adding people are offering discounts of 100 rupees.

* Gold for February delivery on the Multi Commodity Exchange (MCX) was 0.28 percent lower at 30,606 rupees per 10 grams by 2:50 p.m., in line with global markets.

* The yellow metal had touched a high of 30,847 rupees on January 21, when the federal government raised import tax to 6 percent from 4 percent.

* Global gold inched down, pulling further away from a one-month high hit earlier in the week, as increasing confidence in the global economic recovery dulls bullion's appeal as a safe-haven investment.

* A weaker rupee kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Silver for March delivery on the MCX was 0.76 percent lower at 59,410 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)

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

Drug Pricing

REUTERS SHOWCASE

 G20 Meet

G20 Meet

As G20 chases growth goal, members differ on how to get there   Full Article 

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Reuters India Mobile

Reuters India Mobile

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