Don’t miss the latest developments in business and finance.

Gold prices down; demand remains weak

Image
Reuters MUMBAI
Last Updated : Jul 04 2013 | 5:15 PM IST

MUMBAI (Reuters) - Gold demand in India, the world's biggest buyer of the metal, remained weak on Thursday even as prices eased from their highest level in a week.

* The Reserve Bank of India has banned banks, along with state-run and private trading agencies, from importing gold on a consignment or payment of margin basis, making it difficult for small jewellers to source supplies on cash payment. The government also raised the import duty on gold to 8 percent.

* "There is no demand at all and there are no supplies," said Ashok Jain, partner at Mumbai-based wholesaler Chenaji Narsinghji Bullion.

* Gold prices eased from their highest level in a week, tracking global leads and a firm rupee back home.

* Gold for August delivery on the Multi Commodity Exchange was 0.44 percent lower at 26,180 rupees per 10 grams at 1110 GMT, after hitting a high of 26,430 rupees, a level last seen on June 26.

* "Prices are expected to remain steady between 25,000 and 27,000," said Jain.

More From This Section

* Silver for July delivery on MCX was 1.01 percent lower at 41,111 rupees per kilogram.

* The following were the prices of gold and silver in rupees as of 16.15 p.m. local time in the spot market, quoted by Corporation Bank:

Thursday Wednesday

(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi)

Also Read

First Published: Jul 04 2013 | 5:04 PM IST

Next Story