Gold demand subdued on bank holiday, flat prices

MUMBAI Tue Feb 19, 2013 3:59pm IST

A Hindu married woman wears gold bangles at a jewellery shop on the eve of Teej festival in Allahabad September 1, 2008. REUTERS/Jitendra Prakash/Files

A Hindu married woman wears gold bangles at a jewellery shop on the eve of Teej festival in Allahabad September 1, 2008.

Credit: Reuters/Jitendra Prakash/Files

Related Topics

MUMBAI (Reuters) - Gold demand in India, the world's biggest buyer of the metal, was subdued on Tuesday as banks were closed and prices were barely changed.

As of 3:22 p.m., the most active gold contract for April delivery on the Multi Commodity Exchange (MCX) was 0.02 percent higher at 30,181 rupees per 10 grams.

"Prices are steady. If they fall below the 30,000 rupees level, we can see higher demand, especially from jewellers," said an official with a Mumbai-based jewellery exports firm.

India's domestic bond and currency markets are closed on Tuesday for a banking holiday.

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

In overseas markets, gold rose for a second straight session on Tuesday, buoyed by strong physical buying in Asia after traders in China returned from a week-long break.

India's 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.

The silver contract for March delivery on the MCX was 0.07 percent higher at 56,255 rupees per kg.

(Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)

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
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Insider Trading Case

Insider Trading Case

Ex-Goldman director Rajat Gupta to surrender June 17 in insider case.  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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