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Gold importers wait for more price weakness

Source : REUTERS
Last Updated: Tue, Mar 05, 2013 10:55 hrs
Customer selects one-carat gold bangles during exhibition in Jammu

Gold importers in India, the world's biggest buyer of the metal, sought bigger price falls even as a stronger rupee weighed on the yellow metal.

Gold imports could slow in March due to tight liquidity ahead of the fiscal year-end. The wedding season, which pushes up demand, will re-start in April and continue till early June.

At 3:25 p.m., the actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.28 percent lower at 29,586 rupees per 10 gram.

"There are not many deals as the market is expecting lower levels. The rupee could appreciate from here so that way gold could be cheaper," said a dealer with a state-run bank in Mumbai.

The rupee, which reversed from its lowest level in two months on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver premiums fell by up to 30 percent to 4-5 cents due to lack of demand.

Silver for May delivery on the MCX was 0.35 percent higher at 55,011 rupees per kg.

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