Gold trades flat; jewellers look for bargains

Last Updated: Tue, Apr 09, 2013 10:42 hrs

Gold futures traded steady on Tuesday in line with global markets, with traders looking for bargains as weddings and festivals neared.

At 3:51 p.m., the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 10 rupees higher at 29,549 rupees per 10 grams.

Global gold pared early losses, but the metal was under downward pressure after U.S. stocks gained ahead of an earnings season that is expected to show modest growth.

"Buying is slow after prices jumped on Friday... if gold revisits 29,000, there could be activity looking at weddings," said Haresh Acharya, head of bullion desk, Parker Bullion.

The wedding season will now begin in India, the world's biggest buyer of gold, and continue till early June. Festivals will also take place during this period.

India has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.

Finance Minister P. Chidambaram suggested last week the government was unlikely to raise the import tax on gold further to avoid gold smuggling.

Silver for May delivery on the MCX was 0.17 percent higher at 51,286 rupees per kilogram.

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