January 22, 2013 / 12:51 PM / 5 years ago

Stocked Indian gold importers refrain from new deals

MUMBAI, Jan 22 (Reuters) - Gold importers in India, the
world's biggest buyer of the metal, refrained from buying fresh
deals, as they struggle to clear their old stock with duty hikes
drying up demand.
    * Gold for February delivery on the Multi Commodity
Exchange (MCX) was almost steady at 30,782 rupees per 10 grams
by 1227 GMT.
    * "The market is totally calm due to duty hike and rupee
depreciation," said a dealer with a private bullion-importing
bank in Mumbai, adding huge stocks have been piled up in the
market in early January in anticipation of a duty hike.
    * "They now have an advantage of 2 percent due to the duty
hike," the dealer said.
    * India on Monday hiked import duty on processed gold to 6
percent from 4 percent to curb purchases and rein in a
ballooning fiscal deficit. On Tuesday, it more than doubled the
duty on gold dore bars and ores.  
    * The rupee, which weakened on Tuesday, plays an important
role in determining the landed cost of the dollar-quoted yellow
metal. 
    * In the overseas market, gold prices rose above $1,690 per
ounce as better-than-expected German economic data lifted the
euro versus the dollar, but gains were capped by strong chart
resistance and losses in European stocks. 
    * The following were the prices of gold and silver in rupees
at 1600 hrs local time in the spot market, quoted by HDFC Bank
 :  
                        Tuesday    Monday
    ========================================= 
    Gold .999/10 grams   30,750    30,770
    Silver .999/kg       60,780    60,860

 (Reporting by Siddesh Mayenkar; Editing by Gopakumar Warrier)

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