Gold Traders Seek Price Direction; Poor Rains May Play Spoiler-Shanghai Metals Market

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Gold Traders Seek Price Direction; Poor Rains May Play Spoiler

Industry News 04:36:41PM Jul 24, 2012 Source:SMM

(Reuters) - Physical traders of gold in India were looking for direction in prices as the yellow metal steadied near its highest level in two weeks on Tuesday, in line with overseas markets, though a weaker rupee limited the downside.

* The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was down 0.11 percent at 29,416 rupees per 10 grams at 12:55 pm, near the previous session's high of 29,481 rupees, a level last seen on July 10.

* The rupee, which hit its lowest level in three weeks, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Gold imports into India, the world's biggest buyer in 2011, have been sluggish so far in the year, and a below-normal monsoon threatens to dent buying further.

* "There is no heavy buying at current levels... small jewellers are in the market before festivals," said Harshad Ajmera, proprietor of JJ Gold House in Kolkata.

* Festivals in India start in early August and continue till November. Weddings also take place during this period.

* India's gold imports fell by over a half in the June quarter and could slide by a third over the next three months as prices inflated by a weak rupee and a 4 percent import duty encourage traders to use scrap, a Reuters poll showed.

* Monsoon rains are vital to farm economy in rural areas, which consumes more than half of gold imports.

* Silver for September delivery was trading 0.34 percent lower at 52,795 rupees per kg.


 

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Gold Traders Seek Price Direction; Poor Rains May Play Spoiler

Industry News 04:36:41PM Jul 24, 2012 Source:SMM

(Reuters) - Physical traders of gold in India were looking for direction in prices as the yellow metal steadied near its highest level in two weeks on Tuesday, in line with overseas markets, though a weaker rupee limited the downside.

* The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was down 0.11 percent at 29,416 rupees per 10 grams at 12:55 pm, near the previous session's high of 29,481 rupees, a level last seen on July 10.

* The rupee, which hit its lowest level in three weeks, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Gold imports into India, the world's biggest buyer in 2011, have been sluggish so far in the year, and a below-normal monsoon threatens to dent buying further.

* "There is no heavy buying at current levels... small jewellers are in the market before festivals," said Harshad Ajmera, proprietor of JJ Gold House in Kolkata.

* Festivals in India start in early August and continue till November. Weddings also take place during this period.

* India's gold imports fell by over a half in the June quarter and could slide by a third over the next three months as prices inflated by a weak rupee and a 4 percent import duty encourage traders to use scrap, a Reuters poll showed.

* Monsoon rains are vital to farm economy in rural areas, which consumes more than half of gold imports.

* Silver for September delivery was trading 0.34 percent lower at 52,795 rupees per kg.