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Gold importers on sidelines eyeing rupee
February 8, 2013 / 10:58 AM / 5 years ago

Gold importers on sidelines eyeing rupee

MUMBAI (Reuters) - Gold importers in India stayed on the sidelines as the yellow metal continued to trade in recent price range, with a weaker rupee also denting sales.

A goldsmith checks a gold necklace at a workshop in Kolkata April 11, 2012. REUTERS/Rupak De Chowdhuri/Files

* After a 50 percent import duty hike to 6 percent on January 21, the Reserve Bank of India on Wednesday recommended putting curbs on imports, along with launching gold-linked products to limit shipments.

* Gold for April delivery on the Multi Commodity Exchange (MCX) was 0.12 percent higher at 30,832 rupees per 10 grams.

* “We had some deals yesterday night after euro came down along with gold, but there has not been any movement so far as gold is steady and rupee has depreciated,” said a dealer with a state-run bullion importing bank. “If the rupee appreciates, we may see good gold demand.”

* Wedding and festival season is underway in India, the world’s biggest buyer of the metal.

* A weaker rupee kept the prices supported. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* In the overseas market, gold regained its footing after the euro’s weakness pulled it lower in the previous session, while platinum and palladium dropped from their strongest levels in more than a year.

* Silver for March delivery on the MCX was 0.46 percent higher at 58,307 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Gopakumar Warrier

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