My g+ Profile


Wednesday, October 13, 2010

India gold traders stay away as prices hit record


India gold traders stayed away from placing new deals on Wednesday afternoon as prices hit another record high, however a strong rupee kept the upside limited.

Gold futures on the Multi Commodity Exchange (MCX) struck a record high of 19,768 rupees, surpassing the previous peak of 19,744 rupees hit on Oct. 7.

"Heavy buying would be seen at 19,000 (rupees),"

October to December is generally the festival season in India and demand will peak on Dhanteras, slated in November, when jewellers register the highest sales every year. Weddings also take place during the festival season.

This has prompted MMTC, the country's second-largest gold importer, to increase December quarter imports by 37 percent to 55-60 tonnes.

A strong rupee makes the dollar-quoted yellow metal cheaper for local buyers.