Gold traders prefer to stay away; prices extend fall

Last Updated: Fri, Jul 05, 2013 09:20 hrs

Mumbai: Gold traders in India, the world's biggest buyer of the metal, preferred to stay on the sidelines as a seasonally slack demand period was underway, with prices extending the fall from their highest in a week.

The RBI banned imports on a consignment basis, making it difficult for jewellers to source raw material. The government also raised import duty on the yellow metal to 8 percent.

"It is difficult to sell even 5 kg per day as the marriage season is almost over," said Daman Prakash Rathod, director with Chennai-based wholesaler MNC Bullion.

The festival and marriage season will restart in August and continue till December.

Gold prices on the Multi Commodity Exchange (MCX) extended losses for a second day on Friday, easing from their highest level in a week.

The actively traded gold contract for August delivery on the MCX was 0.09 percent lower at 26,120 rupees per 10 grams. It hit a high of 26,430 rupees on Wednesday, the highest since June 26.

Silver contract for September delivery on the MCX was 1.19 percent lower at 40,485 rupees per kg.

More from Sify: