October 21, 2013 / 11:36 AM / 7 years ago

Indian gold traders struggle to get supplies

MUMBAI, Oct 21 (Reuters) - Gold importers in India, the world’s biggest buyer of the metal, struggled to get supplies on Monday, paying record premiums just ahead of the peak festival season next month.

* India celebrates Dhanteras on Nov. 1, the biggest gold buying festival, when consumers buy the yellow metal to invoke prosperity.

* “We are processing orders for exports... the 100 percent export orders need to be cleared first, only after that we will get imports under the 80/20 rule,” said a dealer with a private bank importing bullion.

* Gold imports for domestic consumption are now tied to exports under the new 80/20 rule, as an embattled government tries to curb a record trade deficit.

* “Given (sales) performance (from India) over the last several weeks, the outlook for physical gold buying doesn’t seem very promising,” said UBS in its daily note to clients.

* The absence of pent up demand from India is discouraging for gold, diminishing the potential price lift due to seasonal appetite, said the UBS.

* The actively traded gold for December delivery on the Multi Commodity Exchange (MCX) was 0.71 percent higher at 29,688 rupees ($480) per 10 grams.

* The most-active silver for December delivery was 1.35 percent higher at 48,844 rupees per kg.

* The following were the prices of gold and silver in rupees as of 1600 local time in the spot market, quoted by Corporation Bank:

Monday Friday


Gold .999/10 grams 27,212 27,208

Silver .999/kg 46,398 45,944

$1 = 61.2450 Indian rupees Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi

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