Indian gold demand weak as jewellers postpone purchases

MUMBAI Mon Feb 18, 2013 4:48pm IST

A goldsmith holds finished gold bangles at a workshop in Kolkata January 16, 2013. REUTERS/Rupak De Chowdhuri/Files

A goldsmith holds finished gold bangles at a workshop in Kolkata January 16, 2013.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

MUMBAI (Reuters) - Gold demand in India, the world's biggest buyer of the metal, remained sluggish on Monday as buyers postponed purchases expecting a sharp drop in prices.

As of 1052 GMT, the most active gold contract for April delivery on the Multi Commodity Exchange (MCX) was 0.01 percent lower at 30,190 rupees per 10 grams.

"Demand is weak from local jewellers. Investment demand is also weak. Jewellery exporters are buying, but they are also cautious," said a Mumbai-based dealer with a state-run bank.

"Most jewellers are on the sidelines. They are expecting a sharp drop in prices."

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It fell on Monday.

After a 50 percent import duty increase to 6 percent on January 21, the Reserve Bank of India recommended putting curbs on imports, along with launching gold-linked products to limit shipments.

The government may further raise import duties on gold or put a cap on purchases in a bid to rein in the current account deficit in the 2013/14 budget, an official with the biggest state-run gold importer MMTC said on Monday.

The silver contract for March delivery on the MCX was 0.25 percent higher at 56,204 rupees per kg.

The following were the prices of gold and silver in rupees as of 1.15 p.m. local time in the spot market, quoted by HDFC Bank.

(Reporting by Rajendra Jadhav; Editing by G.Ram Mohan)

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

Drug Pricing

REUTERS SHOWCASE

 G20 Meet

G20 Meet

As G20 chases growth goal, members differ on how to get there   Full Article 

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Reuters India Mobile

Reuters India Mobile

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