Gold traders wary of fresh deals as prices hit one-month high

MUMBAI Mon Jul 22, 2013 2:57pm IST

A saleswoman arranges a gold necklace inside a jewellery showroom in Kochi April 16, 2013. REUTERS/Sivaram V/Files

A saleswoman arranges a gold necklace inside a jewellery showroom in Kochi April 16, 2013.

Credit: Reuters/Sivaram V/Files

Related Topics

MUMBAI (Reuters) - Gold traders in India, the world's biggest buyer of the yellow metal, refrained from striking fresh deals on Monday as prices rose to their highest in more than a month.

Gold imports into India fell about 81 percent in June from the previous month after the government raised import duty and stopped consignment imports.

"Demand has slowed down," said Suresh Jain, director of Bombay Bullion Association, adding that if prices fell sharply, traders would stock up for upcoming festivals and weddings, which start in mid-August and peak with Dhanteras in November.

At 2.56 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 1.59 percent higher at 27,1130 rupees per 10 grams, after having hit a high of 27,180 rupees, a level last seen on June 20, in tandem with overseas markets.

Global gold rose 1.7 percent to a one-month high on technical buying after the U.S. dollar slipped, but the precious metal is still down more than a fifth this year.

Traders and investors also eyed the movement in the rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver for September delivery on the MCX was 1.87 percent higher at 41,108 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

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