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

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)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

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