Friday 13 September 2013

Gold at 1-month low; demand slightly up

 Gold demand in India, the world's top consumer of the precious metal, slightly improved on Friday as prices fell to their lowest in a month tailing losses in the world market.

At 0921 GMT, the benchmark October contract on the Multi Commodity Exchange (MCX) was 1.19 per cent lower at Rs 29,690 per 10 grams. It hit a low of Rs 29,636 earlier in the day, a level last seen on Aug. 16.

"A few jewellers are comfortable in placing orders below Rs 30,000. Some buyers are still on the sidelines expecting a further drop in prices," said a Mumbai-based dealer.

In the overseas market, gold reversed early gains and fell to its lowest in more than a month on Friday as US futures extended losses on fears the United States would curb its stimulus soon.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It eased on Friday.

India's gold imports are likely to be around $38 to $40 billion in the current fiscal year to March 31, 2014, down from last fiscal year's $53.8 billion, C. Rangarajan, economic adviser to the prime minister, said on Friday.

Silver for September delivery on the MCX was 2.36 per cent lower at Rs 49,305 per kg.

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