Gold prices up in line with world stocks, weaker rupee

Last Updated: Tue, Jan 15, 2013 10:01 hrs
A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh

Gold importers in India, the world's biggest buyer of the metal, kept to the sidelines after the harvest festival as prices edged higher in line with global markets and a weaker rupee, traders said on Tuesday.

The harvest festival in India is a period during which demand for gold from rural areas goes up due to higher disposable income from sale of agricultural goods. Weddings are also slated to begin later in the month and continue until May.

"Buying is still dull, and there is no real demand," said a dealer with a bullion importing private bank in Mumbai.

At 3:16 p.m., the most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.34 percent higher at 30,845 rupees per 10 grams.

Global gold rose 1 percent to top $1,683 per ounce, taking a cue from Federal Reserve comments late Monday that suggested the central bank was in no hurry to withdraw monetary stimulus. The rupee, which traded weaker on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver for March delivery on the MCX was 0.84 percent higher at 59,235 rupees per kg.

More from Sify: