Gold importers retreat after last week's bargains

Written By Unknown on Senin, 29 Oktober 2012 | 16.02

Gold importers in India, the world's biggest buyer, are retreating after picking up bargains last week as prices recovered from their lowest level in more than two months due to a falling rupee.

* The most-active gold for December delivery on the Multi Commodity Exchange (MCX) rose 0.18 percent to Rs 31,079 per 10 grams, helped by a weaker rupee and global leads. The contract recovered from the last week's low of Rs 30,827, a level previously seen on August 23.

* "Few stray deals are there in the market due to a depreciating rupee, we haven't seen big volumes yet compared to last week," said a dealer with a private importing bank in Mumbai.

* The festival season is underway in India and it will peak with Diwali and Dhanteras next month. Weddings also take place during this period.

* The rupee, which fell past the keenly-watched Rs 54 per dollar mark on Monday, plays an important role in determining the landed cost of dollar-quoted yellow metal.

* Global gold edged up after robust US economic data lifted prices in the previous session, but gains could be capped by a firmer US dollar.

* Silver for December delivery on the MCX was 0.02 percent lower at Rs 59,690 per kg.



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