Indian gold importers wary; weigh RBI comment

MUMBAI Thu Feb 7, 2013 4:05pm IST

Customers look at gold bangles inside a jewellery shop in September 8, 2009. REUTERS/Krishnendu Halder/Files

Customers look at gold bangles inside a jewellery shop in September 8, 2009.

Credit: Reuters/Krishnendu Halder/Files

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, preferred to stay away from the market as they digested the recommendations from the RBI to limit imports even as prices continued to trade in a range.

After a 50 percent import duty hike to 6 percent on January 21, the Reserve Bank of India on Wednesday recommended putting curbs on imports, along with launching gold-linked products to limit shipments.

"Market is slow these days as overall sentiments are not so good because of RBI comments," said a dealer with a private bank in Mumbai, adding "if they come up with quota system, then market will become very ugly."

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.09 percent higher at 30,738 rupees per 10 grams at 4:04 p.m., helped by a weaker rupee.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Elsewhere, in the overseas market, gold inched up ahead of a European Central Bank meeting that could set the tone for the euro, while platinum and palladium held near their highest levels in 17 months on hopes of a better economic outlook.

Silver for March delivery on the MCX was flat at 58,425 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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


Asian Markets

Asian Markets

Asian stocks flat after China PMI meets expectations  Full Article 

Chinese Economy

Chinese Economy

Factory activity shrinks for 4th month; pace of decline slows   Full Article 

International Gold

International Gold

Gold hovers near 2-1/2 month lows on firm equities, fund outflows  Full Article 

GM Lawsuit

GM Lawsuit

GM seeks U.S. court protection against ignition lawsuits  Full Article 

Reuters India Mobile

Reuters India Mobile

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