Gold importers on sidelines eyeing rupee
MUMBAI (Reuters) - Gold importers in India stayed on the sidelines as the yellow metal continued to trade in recent price range, with a weaker rupee also denting sales.
* 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.
* Gold for April delivery on the Multi Commodity Exchange (MCX) was 0.12 percent higher at 30,832 rupees per 10 grams.
* "We had some deals yesterday night after euro came down along with gold, but there has not been any movement so far as gold is steady and rupee has depreciated," said a dealer with a state-run bullion importing bank. "If the rupee appreciates, we may see good gold demand."
* Wedding and festival season is underway in India, the world's biggest buyer of the metal.
* A weaker rupee kept the prices supported. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* In the overseas market, gold regained its footing after the euro's weakness pulled it lower in the previous session, while platinum and palladium dropped from their strongest levels in more than a year.
* Silver for March delivery on the MCX was 0.46 percent higher at 58,307 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Gopakumar Warrier)
- Tweet this
- Share this
- Digg this
Trending On Reuters
The government sold a 10 percent stake in state-run behemoth Coal India on Friday, in a bumper sale which saw demand from institutional investors marginally exceed supply, giving a welcome boost to the government's faltering divestment drive. Full Article