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

Economic Pulse

REUTERS SHOWCASE

Smartphone Wars

Smartphone Wars

Google's Android One adds to Samsung's worries.  Full Article 

India Services Activity

India Services Activity

Services growth slowed in August, orders waned.  Full Article 

Money Matters

Money Matters

Banks pile pressure on liquor baron Mallya over airline loans.  Full Article 

Moody's on India

Moody's on India

India's rating seen limited by fiscal deficit, inflation - Moody's  Full Article 

Political Pulse

Political Pulse

100 days of Modi: Good for business, not so good for marginalised groups.  Full Article 

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi.  Full Article 

China Economy

China Economy

China services activity rebounds but property remains a worry.  Full Article 

Reuters India Mobile

Reuters India Mobile

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