Gold buyers wait for below support price levels

MUMBAI Tue Feb 5, 2013 4:57pm IST

Gold biscuits are displayed inside a jewellery showroom in Hyderabad April 11, 2012. REUTERS/Krishnendu Halder/Files

Gold biscuits are displayed inside a jewellery showroom in Hyderabad April 11, 2012.

Credit: Reuters/Krishnendu Halder/Files

Related Topics

MUMBAI (Reuters) - Gold buying in India remained subdued, with negligible stocks of the yellow metal bought before the tax hike, while consumers waited for a price correction below support levels.

* Weddings and festive season have started in India, the world's biggest buyer of the metal, but the government plans to restrict gold buying by announcing more measures in addition to a 50 percent hike in import duty to keep a lid on its bloating current account deficit.

* Traders had accumulated stocks, when the finance minister hinted of a duty hike on January 2, and later raised the duty on January 21.

* "Activity is happening, but not in a huge way after yesterday's rebound. Prices are holding the 30,000 rupees level and the market is expecting a correction below the support level, triggered by shift from gold to currencies and equities," said a dealer with a private bullion importing bank in Mumbai.

* The actively traded gold contract for April delivery on the Multi Commodity Exchange (MCX) was 0.03 percent lower 30,771 rupees per 10 grams.

* A slightly stronger rupee weighed on prices of the yellow metal. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Silver contract for March delivery on the MCX was 0.21 percent higher at 58,543 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Anand Basu)

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

Market Eye

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Cipla Shares

Cipla Shares

Cipla jumps after key generic launch.  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit.  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks.  Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter.  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past.  Full Article 

Reuters India Mobile

Reuters India Mobile

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