Gold edges up from two-week low

Last Updated: Mon, Apr 01, 2013 11:29 hrs

Gold futures edged up from their lowest level in two weeks in tandem with overseas markets, but traders were waiting for a bigger fall in prices to book the yellow metal for the upcoming wedding season.

India, the world's biggest buyer of gold, has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 94 rupees higher at 29,488 rupees per 10 gram, recovering from a low of 29,254 rupees struck on Saturday, a level last seen on March 15.

Global gold firmed, as signs that China's economic recovery was gaining traction could boost demand for commodities, but prices could be capped by worries about the debt crisis in Cyprus and the weakness of the euro versus the U.S. dollar.

"Business is quiet. We could hopefully have sales later in the month, after a sluggish March. There could be buying at 29,000 rupees (per 10 grams)," said Haresh Acharya, director at Ahmedabad-based wholesaler Parker Bullion.

The wedding season will continue until early June, with Akshaya Tritiya, the second-biggest gold buying festival after Dhanteras, scheduled in May. Banks were shut on Monday on due to the start of a new financial year.

Silver for May delivery on the MCX was 0.25 percent lower at 52,941 rupees per kg.

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