Gold importers on sidelines on price rise, liquidity

MUMBAI Tue Feb 26, 2013 3:39pm IST

A salesgirl is reflected in a mirror inside a gold jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival in Kochi April 24, 2012. REUTERS/Sivaram V/Files

A salesgirl is reflected in a mirror inside a gold jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival in Kochi April 24, 2012.

Credit: Reuters/Sivaram V/Files

Related Topics

MUMBAI (Reuters) - Gold importers in India, the world's biggest buyer of the metal, kept to the sidelines on Tuesday as prices recovered partly from the lowest level in seven months hit last week, and on a liquidity crunch ahead of the closing of the financial year next month.

* As of 3:24 p.m., the actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.52 percent higher at 29,777 rupees per 10 grams. The contract hit a seven-month low of 29,263 rupees last week.

* Local gold prices rose following gains in the world market and on a weak rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* In the overseas markets gold rose after Italian elections rocked global markets, with no party or coalition winning a majority in the Senate, fuelling worries of a split parliament and power vacuum in the euro zone's third-largest economy.

* "Demand is weak as liquidity is tight before March end," said Prithviraj Kothari, director with RiddiSiddhi Bullions Ltd, a wholesaler in Mumbai.

* India's fiscal year starts on April 1 and ends on March 31.

* Market participants feel that there could be another round of hike in import duty on refined gold to 8 percent from the earlier 6 percent to keep a lid on the rising current account deficit.

(Reporting by Siddesh Mayenkar; 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

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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