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Gold importers slow purchases on weak rupee
February 15, 2013 / 10:09 AM / 5 years ago

Gold importers slow purchases on weak rupee

MUMBAI (Reuters) - Gold importers in India, the world’s biggest buyer of the metal, slowed purchases, as a weaker rupee kept the downside in prices limited, despite weak overseas market.

A goldsmith works on a gold bangle at a workshop in Kolkata January 16, 2013. REUTERS/Rupak De Chowdhuri/Files

* After a 50 percent import duty increase 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. The wedding and festival season is currently on in India.

* “Buying is slow as Indian rupee has depreciated even after a fall in overseas market,” said Haresh Acharya, head of bullion desk, Parker Bullion in Ahmedabad. “If prices hit below 30,000 rupees per 10 grams there could be good buying.”

* As of 0940 GMT, the most active gold contract for April delivery on the Multi Commodity Exchange (MCX) was 0.18 percent lower at 30,408 rupees per 10 grams mainly on the back of overseas market.

* Though a weakness in the rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, kept the losses restricted.

* Silver for March delivery on the MCX was 0.05 percent lower at 56,600 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by G.Ram Mohan

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