Gold at 30,000 rupees; traders stay away -
August 6th, 2012
Indian gold hit the Rs 30,000 mark on Monday, following firm global markets, while a stronger rupee kept the upside limited, with traders unwilling to book deals near the keenly-watched level.
* At 0939 GMT, the most-traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.21% higher at Rs 29,966 per 10 grams, after hitting a high of Rs 30,004 earlier in the day.
* The contract had touched rs 30,396 on August 3 .
* Global gold inched higher, extending gains from the previous session after better-than-expected US employment data lent support to risk appetite, weighing on the dollar.
* The rupee, which traded stronger on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* "Business has come to a standstill... people's money is lying with the banks, they are still waiting for prices below Rs 30,000," said Harshad Ajmera, proprietor of Kolkata-based JJ Gold House.
* Physical demand has already halved in India, the world's biggest consumer in 2011, due to doubling of import duty to 4%. Forecasts of deficient rains are likely to further threaten demand from rural areas, which contribute to 60% of the country's gold imports.
* The festival season starts in August in India, the world's biggest gold buyer in 2011, and continues till November.
* Silver also traded higher following the yellow metal.
* Silver for September delivery on the MCX was 0.17% higher at Rs 53,363 per kg.