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:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

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