Gold importers stay on sidelines; prices hit over 9-month high

Last Updated: Mon, Aug 26, 2013 13:20 hrs

Gold traders in India, the world's biggest buyer of the metal, kept to the sidelines awaiting resumption of imports, even as prices hit their highest level in more than nine months.

India may re-start imports this week after the central bank clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a stand-still at the end of July.

"Everything is stand-still, there is no demand or supply. Manufacturers and wholesalers are not getting metal from the bank," said Haresh Soni, chairman at All India Gems and Jewellery Trade Federation.

At 1224 GMT, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.39 percent higher at 31,880 rupees per 10 grams, after hitting a high of 31,980 rupees, a level last seen on November 28, helped by a weaker rupee.

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

Silver for September delivery on the MCX was 0.71 percent higher at 53,851 rupees per kg.

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