Gold hits record; traders stay away
Gold struck another record high today following firm overseas markets and a weaker rupee, driving traders away from physical market awaiting for bargains, dealers said.business Updated: Mar 07, 2011 15:01 IST
Gold struck another record high on Monday following firm overseas markets and a weaker rupee, driving traders away from physical market awaiting for bargains, dealers said.
"There are not many deals, even rupee is not supportive," said a dealer with a state-run bullion importing bank.
The moast-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.54% higher at 21,211 rupees per 10 grams at 2:16pm, after hitting a record of 21,247 rupees.
The rupee fell, tracking weak local shares and high global crude oil prices, while domestic political worries also weighed on sentiment. A weaker rupee makes the dollar-denominated asset expensive.
The high-demand wedding season is underway in India, the world's largest conumer of the yellow metal.
India's gold imports in Oct-Dec rose 30% to 265 tonnes, and an increase in import duty is likely in the upcoming budget, the World Gold Council said on Feb 17.
Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15pm:
Gold .999/10 grams 21,310 20,979
Silver .999/kg 56,050 53,204
Following were prices in rupees on the Multi Commodity Exchange of India Ltd at 2:16pm:
Contract Current price Net change
Apr gold 21,211 +113
May silver 54,405 +988