February 12, 2013 / 10:14 AM / 5 years ago

Gold importers retreat as rupee weakens

MUMBAI (Reuters) - Gold importers in India, the world’s biggest consumer of the metal, retreated as a weaker rupee limited the downside in prices, despite weak overseas markets.

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012. REUTERS/Ajay Verma

* After a 50 percent import duty hike to 6 percent on January 21, the Reserve Bank of India last week recommended putting curbs on imports, along with launching gold-linked products to limit shipments. Wedding and festival season are currently underway in India.

* The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.08 percent lower at 30,617 rupees per 10 grams.

* “Buying is there, but not in a big way as rupee has depreciated and overall costing remains in the same range. People are hoping to buy below 30,000 rupees,” said a dealer with a private bullion importing bank in Mumbai.

* The rupee, which traded weaker, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Overseas gold extended losses to hit its weakest in more than a month in holiday-thinned trade.

* Silver for March delivery on the MCX was 0.39 percent lower at 57,435 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Sunil Nair

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