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

Gold trades flat, importers seek price direction

Image
Reuters MUMBAI
Last Updated : Mar 11 2013 | 2:40 PM IST

MUMBAI (Reuters) - Gold prices in India, the world's biggest importer of the yellow metal, were steady on Monday as support from overseas market was offset by a stronger rupee at home, with importers seeking price direction amid tight liquidity condition before the year end.

* India has been trying to curb imports of gold, which has been called a dead investment by the federal government, to put a lid on record high current account deficit by hiking import duty by 50 percent to 6 percent in January.

* At 2:22 p.m., the actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was flat at 29,344 rupees per 10 grams.

* "Some buying was there after Friday's fall, but today there is nothing as rupee didn't open at comfortable level and even gold prices went up," said a dealer with a state-run bullion dealing importing bank.

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

* Weddings and festivals will re-start next month and will continue till early June.

More From This Section

* Silver for May delivery on the MCX was 0.09 percent lower at 54,805 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Bijoy Koyitty)

Also Read

First Published: Mar 11 2013 | 2:24 PM IST

Next Story