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Indian gold demand weak as buyers seek stability in rupee
September 17, 2012 / 10:08 AM / 5 years ago

Indian gold demand weak as buyers seek stability in rupee

MUMBAI, Sept 17 (Reuters) - Gold demand in India, the
world's biggest consumer, was subdued on Monday as buyers waited
for the rupee to stabilise before making purchases for the
festive season.
    * The most-traded gold contract, for October delivery
, was down 0.13 percent at 31,840 rupees per 10 grams by
0944 GMT, after hitting a record high of 32,421 rupees late on
    * "The sharp rise in the rupee was a surprise for buyers.
They bought gold aggressively on Friday, but are now waiting for
the rupee to stabilize," said a Mumbai-based dealer with a
private bank.
    * The rupee rose to a four-month high in early trade on
Monday in hopes of major foreign inflows after the federal
government announced the opening up of the aviation and
multi-brand retail sectors to overseas direct investment.
    * A strong rupee makes imports of gold cheaper.
    * "Buyers are not expecting prices to move higher in the
world market. The market has factored in the impact of the
Federal Reserve's stimulus programme," the dealer said.
    * In the international market, spot gold eased to
$1,767.59 an ounce.
    * India celebrates the Ganesh festival this week, which will
be followed by Dussehra in October and Diwali in November.
Buying gold during festivals is considered auspicious.
    * Following were the prices in rupees at 1:15 p.m., quoted
by HDFC Bank in the spot market :
                         Monday        Friday   
    Gold .999/10 grams    32,076        32,485  
    Silver .999/kg        65,300        66,020  
    At 0944 GMT, following were the prices in rupees on the
Multi Commodity Exchange of India Ltd <0#MAU:>: 
       Contract        Current price      Net change  
       Oct gold          31,840            -40    
       Dec silver        64,078            -206

 (Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)

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