 |
| A salesman displays gold bars inside a jewellery shop in Hyderabad May 6, 2011. REUTERS/Krishnendu Halder/Files |
MUMBAI (Reuters) - Demand for gold eased in India, the world's top consumer, on Friday as prices in the local market rose following a rise in the overseas market, dealers said. A strong rupee, however, limited the gains. The most-active February gold on the Multi Commodity Exchange was up 0.1 percent at 27,850 rupees per 10 grams by 0941 GMT. "Indian consumers are becoming more and more price sensitive. They are avoiding purchases above $1,620 per ounce level," said a Mumbai-based dealer with a private bank dealing in bullion. He sees buying emerging at around $1,590 level . "If rupee remains at current level, we can see demand at that level."International spot gold edged up 0.3 percent to $1,626.84 an ounce, on course for a weekly rise of 3.7 percent, its strongest in a month as investors nervous over the euro zone debt crisis sought safety in bullion. The rupee, which plays an important role in determining the landed cost of the dollar-quoted gold, rose to 52.7575/7650 to the dollar from 52.98/99 on Thursday, aided by foreign investors buying into local debt.India has made hallmarking gold jewellery mandatory, a senior government minister said on Wednesday, a move that could boost demand in the world's biggest gold market by taking care of quality worries. Gold imports by India plunged 56 percent to 125 tonnes in the fourth quarter of 2011, cutting full-year imports by 8.4 percent as record high prices and high interest rates hit demand, Bombay Bullion Association President Prithviraj Kothari said.
(Source- http://in.finance.yahoo.com)
No comments:
Post a Comment