Gold importers retreat as rupee weakens
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)
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The recent market correction was overdue. A further correction would be an opportunity for those who missed the rally in the past few months. The markets could get a reality check next year and consolidate before the next big movement. I still believe PM Modi will not fritter away his mandate and deliver on his promise, albeit with a delay, writes Ambareesh Baliga. Article