Gold importers retreat as rupee weakens

MUMBAI Tue Feb 12, 2013 3:42pm IST

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012. REUTERS/Ajay Verma

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012.

Credit: Reuters/Ajay Verma

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest consumer of the metal, retreated as a weaker rupee limited the downside in prices, despite weak overseas markets.

* 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 most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.08 percent lower at 30,617 rupees per 10 grams.

* "Buying is there, but not in a big way as rupee has depreciated and overall costing remains in the same range. People are hoping to buy below 30,000 rupees," said a dealer with a private bullion importing bank in Mumbai.

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

* Overseas gold extended losses to hit its weakest in more than a month in holiday-thinned trade.

* Silver for March delivery on the MCX was 0.39 percent lower at 57,435 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Rising Inflation

Rising Inflation

Food prices push inflation up, limit RBI's room to act.  Full Article 

New Direction

New Direction

New CEO Nadella pushes data culture at Microsoft.  Full Article 

Infosys Results

Infosys Results

Infosys says staff exodus a worry after Q4 profits beat estimates  Full Article 

Deal Talk

Deal Talk

Diageo in $1.9 billion bid to raise stake in United Spirits.  Full Article 

Reuters Poll

Reuters Poll

Domestic fund managers start to bet on own economy  Full Article 

S&P on India

S&P on India

India's policy reforms to affect sovereign ratings - S&P.  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Third Gender

Third Gender

Supreme Court recognises transgenders as third gender in landmark ruling.  Full Article 

Reuters India Mobile

Reuters India Mobile

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