MUMBAI 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.
* 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)
Trending On Reuters
The NSE Nifty fell 3.4 percent on Thursday to the lowest since May 2014, its biggest daily fall in nearly six months as fears of a slowdown in the global economy hammered markets worldwide. Full Article