Gold steady near two-week high, discourages importers

Last Updated: Mon, Apr 29, 2013 09:44 hrs

Gold futures in India, the world's biggest buyer of the metal, edged higher on Monday, still near the highest level in two weeks, discouraging importers seeking to stock up for upcoming weddings and festivals.

At 2:30 p.m., the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.13 percent higher at 27,225 rupees per 10 grams, after hitting a high of 27,447 rupees on Friday, a level last seen on April 15.

A stronger rupee kept the upside in the yellow metal limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

"Gold volumes are not high compared with last week. Sales are down 25-30 percent as gold prices are up," said a dealer with a state-run bank in Mumbai.

The recent 20 percent drop in prices had triggered a buying frenzy among importers. India will celebrate Akshaya Tritiya next month, while weddings will continue till June or July.

Premiums are expected to ease from a high of $10 an ounce on London prices seen last week.

"Premiums should come down from the current $4," said the dealer.

The most-active silver for May delivery on the MCX was 0.53 percent higher at 45,285 rupees per kilogram.

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