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Gold prices hit multi-week high in India

Source : REUTERS
Last Updated: Fri, Nov 09, 2012 10:57 hrs
Gold biscuits are displayed inside a jewellery showroom in Hyderabad

Gold importers in India, the world's biggest buyer of bullion, paused on fresh purchases ahead of key festivals next week, as a weaker rupee helped the yellow metal hit its highest level in seven weeks.

* At 1032 GMT, the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.93 percent higher at 31,632 rupees per 10 grams, after hitting a high of 31,643 rupees, a level last seen on October 1.

* The rupee, which traded weaker on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Sales have slowed as prices jumped after Friday's dip... we are hopeful that sales will start again next week," said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.

* The festive season in India will peak with Dhanteras and Diwali next week, while the wedding season continues until December.

* Overseas gold rose to a three-week high on Friday, on track for its first weekly gain in four, on hopes that U.S. monetary policy would remain loose after President Barack Obama's re-election and as worries about looming fiscal woes boosted bullion's appeal.

* Silver also moved higher following the yellow metal.

* Silver for December delivery on the MCX was 0.91 percent higher at 60,432 rupees per kg.




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