February 22, 2013 / 12:27 PM / 5 years ago

Gold demand moderate as prices soften

MUMBAI (Reuters) - Gold demand in India, the world’s biggest consumer of the metal, was moderate on Friday as the correction in prices lured some jewellers, but some investors were on the sidelines hoping for a sharp drop in future.

* As of 1206 GMT, the most active gold contract for April delivery on India’s Multi Commodity Exchange (MCX) was 0.69 percent lower at 29,537 rupees per 10 grams. The contract hit a seven-month low of 29,263 rupees on Thursday.

* “At this point of time people are thinking there can be more lows so they are waiting for a correction,” said Mohit Kamboj, president of the Bombay Bullion Association.

* The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, rose on Friday.

* Globally, gold firmed on Friday, helped by a recovery in assets seen as higher risk, like stocks, the euro and other commodities, after stronger-than-expected German economic data and on concerns that this week’s selling may have been overdone.

* The silver contract for March delivery on the MCX was 0.62 percent lower at 53,778 rupees per kg.

* The following were the prices of gold and silver in rupees as of 4.15 p.m. local time in the spot market, quoted by HDFC Bank:

Friday Thursday

Reporting by Rajendra Jadhav; Editing by G.Ram Mohan

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