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Gold prices steady ahead of festivals
October 30, 2012 / 9:28 AM / 5 years ago

Gold prices steady ahead of festivals

MUMBAI (Reuters) - Gold importers in India picked up deals for key festivals after prices stayed steady in the vicinity of their lowest level in more than two months as support from overseas market was offset by a stronger rupee.

A salesman arranges gold necklaces at a jewellery showroom in Chennai April 27, 2009. REUTERS/Babu/Files

* The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.01 percent higher at 31,097 rupees per 10 grams, after hitting a low of 30,968 rupees, a level last seen in late August.

* “People have started buying as rates are comfortable... if prices stay in a range, we can see better sales for Diwali,” said Harshad Ajmera, proprietor of JJ Gold House in Kolkata.

* Festivals in India, the world’s biggest buyer, will peak with Diwali and Dhanteras next month. Weddings will also take place during this period.

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

* Global gold reversed losses tracking equities, but was heading for its biggest monthly drop since May.

* The focus this week will be on Friday’s U.S. non-farm payrolls report, which could shed light on the nascent labour market recovery and influence an increasingly tight election between Democratic President Barack Obama and Republican challenger Mitt Romney.

* Silver edged higher following copper, another industrial metal.

* Silver for December delivery on the MCX was 0.26 percent higher at 59,547 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Anand Basu

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