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Indian gold hits 2-week high; demand stays muted
May 30, 2013 / 9:48 AM / 5 years ago

Indian gold hits 2-week high; demand stays muted

MUMBAI, May 30 (Reuters) - Indian gold futures hit their highest level in two weeks on Thursday, following gains in the world market and on a weak rupee, but demand remained weak as a lean season has started in the world’s biggest consumer of the precious metal.

* The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 0.9 percent higher at 26,869 rupees per 10 gram at 0928 GMT, after rising to 26,899 rupees, the highest level since May 14.

* “Jewellers have bought enough earlier this month to cater retail demand in the next few months. Right now, retail demand is weak,” said a member of the Bombay Bullion Association, who declined to be named.

* “Investment demand is also poor. People are expecting further fall in prices. They don’t want to enter at current levels.”

* Demand for gold usually remains poor in June as farmers spend on inputs like seeds and fertilisers.

* In the overseas market, gold jumped more than 1 percent to a one-week high on Thursday as investors dumped equities, but the metal still risked losing its safe-haven appeal on worries the U.S. Federal Reserve could scale back its bullion-friendly bond-buying programme.

* Premiums for physical gold in India eased to $4 an ounce over spot London prices from $20 just two weeks back, dealers said.

* The rupee, which is trading near its lowest level in 10 months, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* The World Gold Council expects Indian gold imports to reach 350-400 tonnes in the second quarter, 200 percent higher than a year earlier and almost half of last year’s total imports.

* The Reserve Bank of India on Monday said banks would not be allowed to give loans against units of gold exchange-traded funds and gold mutual funds.

* Silver for July delivery on the MCX was 1.06 percent up at 44,169 rupees per kilogram. (Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)

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