Gold traders retreat; higher supplies weigh on premiums

 

Gold traders in India refrained from placing new orders as prices steadied near their two-week high, and premiums also came off from their highest level in more than 2 years with supplies rising.

 

* The price fall to its lowest level in more than 18 months had triggered a buying frenzy among consumers in India, the world's biggest buyer of the metal, but interest has subsided on partial recovery in prices.

 

* "Retail sales are already down since yesterday due to the price rise," said Daman Prakash Rathod, director with Chennai-based wholesaler MNC Bullion.

 

* Premiums charged on London prices were at $2-4 an ounce as against 2010-level of $10 seen earlier in the week.

 

* "Scarcity and shortage have disappeared as imports that were contracted last week started coming in," said a dealer with a private bank in Mumbai.

 

* India, the biggest buyer of gold, has been trying to limit imports to keep a lid on record current account deficit, and the economic advisory council expects the country to import $45 billion tonnes of the yellow metal in the year to March 2014.

 

* The most-active gold for June delivery on the Multi Commodity Exchange was 0.05 5 higher at 27,055 rupees per 10 grams, after hitting a high of 27,264 rupees earlier, helped by a weaker rupee.

 

* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

 

* Silver for May delivery on the MCX was 0.44 5 at 44,977 rupees per kilogram.