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Economy Jul 22, 2013

Indian gold traders wary of fresh deals as prices hit one-month high

Mumbai: Gold traders in India, the world's biggest buyer of the yellow metal, refrained from striking fresh deals on Monday as prices rose to their highest in more than a month.

Gold imports into India fell about 81 percent in June from the previous month after the government raised import duty and stopped consignment imports.

"Demand has slowed down," said Suresh Jain, director of Bombay Bullion Association, adding that if prices fell sharply, traders would stock up for upcoming festivals and weddings, which start in mid-August and peak with Dhanteras in November.

Reuters

Reuters

At 2.56 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 1.59 percent higher at 27,1130 rupees per 10 grams, after having hit a high of 27,180 rupees, a level last seen on June 20, in tandem with overseas markets.

Global gold rose 1.7 percent to a one-month high on technical buying after the U.S. dollar slipped, but the precious metal is still down more than a fifth this year.

Traders and investors also eyed the movement in the rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver for September delivery on the MCX was 1.87 percent higher at 41,108 rupees per kg.

Reuters


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