India traders buy gold, silver at record prices

Last Updated: Mon, Apr 25, 2011 09:36 hrs

Indian gold and silver traders bought the metal at record prices to stock for Akshaya Tritya and the wedding season, expected to extend till May, providing underlying support to world prices, dealers said.

Gold rates

The most-traded gold for June delivery on the Multi Commodity Exchange (MCX) was trading 0.02 percent higher at 22,125 rupees per 10 grams, after hitting a record of 22,172 rupees earlier in the day.

Silver prices also surged, extending the previous session's gains, to hit another record. The white metal struck a new record of 73,600 rupees per kg on Monday afternoon.

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"I booked for 100 kg from morning at $1,538.5 (an ounce). Both my Delhi and Mumbai centres are active," said a dealer with a state-run bank in Mumbai dealing in bullion. "I have advance orders at $1,517."

Gold traders also bought dollars in the foreign exchange market, resulting in a drop in the local currency.

India, the world's largest consumer of the yellow metal, celebrates a gold-buying festival on May 6 and will be followed by weddings expected to pump up demand.

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India had imported 900 tonnes of gold last year spurred by wedding and festival purchases.

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