February 14, 2012 / 7:52 AM / 7 years ago

Gold traders in India await further price fall

A woman wears a gold bangle at a jewellery shop in Siliguri October 1, 2008. REUTERS/Rupak De Chowdhuri/Files

MUMBAI (Reuters) - Gold traders in India, the world’s biggest buyer of bullion, stayed on the sidelines on Tuesday after a brief pick-up in activity the previous day, on expectations global prices will fall further tracking a weak euro.

* The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.37 percent lower at 28,015 rupees per 10 grams, recovering from a low of 27,985 rupees, a level last seen on February 7.

* “Overnight demand was good as prices have come down... but now buying is stable,” said a dealer with a state-run bullion importing bank.

* Global gold edged lower, tracking a weaker euro, as wary investors focused on whether Greece will be able to convince Europe to grant a much-needed bailout and implement unpopular reforms.

* A weaker rupee kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

* Silver also edged lower, tracking gold.

* Silver for March delivery on the MCX was 0.36 percent lower at 56,462 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Aradhana Aravindan

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