Gold traders stay away due to weak rupee

MUMBAI Mon Feb 11, 2013 3:03pm IST

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008. REUTERS/Parth Sanyal/Files

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008.

Credit: Reuters/Parth Sanyal/Files

Related Topics

MUMBAI (Reuters) - Gold traders in India, the world's biggest consumer of the metal, remained on the sidelines after a weak rupee limited the downside in prices.

After a 50 percent import duty hike to 6 percent on January 21, the Reserve Bank of India last week recommended putting curbs on imports, along with launching gold-linked products to limit shipments. Wedding and festival season are currently underway in India.

The actively traded contract gold for April delivery on the Multi Commodity Exchange (MCX) was 0.07 percent lower at 30,793 rupees per 10 grams.

"Not many deals are happening as the rupee depreciated on opening and gold is holding steady... People are still bearish on prices of gold," said a dealer with a state-run bullion dealing bank in Mumbai, adding "the situation might last for this week if prices don't correct."

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

In the overseas market, gold edged up despite a volatile euro on Monday, with thin trade due to the Lunar New Year break exaggerating movements.

The most-traded silver contract for March on the MCX was 0.02 percent lower at 58,234 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Anand Basu)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Indian in Iraq

Indian in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Full Article 

Reuters India Mobile

Reuters India Mobile

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