Gold futures hit over seven-month high as rupee falls

MUMBAI Mon Aug 19, 2013 3:12pm IST

Employees wait for customers inside a gold jewellery showroom in New Delhi August 13, 2013. REUTERS/Anindito Mukherjee

Employees wait for customers inside a gold jewellery showroom in New Delhi August 13, 2013.

Credit: Reuters/Anindito Mukherjee

Related Topics

MUMBAI (Reuters) - Gold prices in India, the world's biggest buyer of the metal, hit their highest level in more than seven months, helped by a rupee that weakened to a record low again.

* The actively traded gold contract for October delivery on the Multi Commodity Exchange (MCX) was 0.1 percent lower at 30,809 rupees per 10 grams, after hitting a high of 31,000 rupees earlier in the day, a level last seen on January 7.

* The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, looked poised for further losses, with a series of measures unveiled last week failing to stall its decline.

* Overseas gold hit fresh two-month highs, helped by weak U.S. data that increased the metal's safe-haven appeal, and further inflows into the world's biggest bullion-backed exchange traded fund (ETF).

* In the domestic market, demand remained subdued amid circular from the Reserve Bank of India clarifying a July order for imports, while premiums remained steady.

* "Demand is zero ... there could be demand after 15 days," said Suresh Jain, director of Bombay Bullion Association.

* India turned the screw on gold buying again, banning imports of coins and medallions and making domestic buyers pay cash, after hiking bullion import duty to a record 10 percent.

* Silver for September delivery on the MCX was 0.05 percent lower at 50,635 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Anand Basu)

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