India traders buy gold, silver at record prices

Last Updated: Mon, Apr 25, 2011 08:40 hrs

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

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.

"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.

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

(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)

More from Sify: