SENSEX NIFTY
Apr 12, 2013, 02.57 PM IST | Source: Reuters

Gold prices set for 2% fall this week

Gold futures in India, the world's biggest buyer of the metal, hovered around their lowest level in a week, though prices were on track for a 2-percent fall this week.

Gold prices set for 2% fall this week

Gold futures in India, the world's biggest buyer of the metal, hovered around their lowest level in a week, though prices were on track for a 2-percent fall this week.

* At 2:49 p.m., the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was down 161 rupees at 29,022 rupees per 10 grams.

* It had touched a low of 29,055 rupees in the previous session, a level last seen on April 5.

* In the overseas market, gold prices were also steady, but on track for their worst week since late February as strong equities lured investors seeking better returns, while outflows from exchange-traded funds underlined the shaky outlook for bullion.

* A stronger rupee weighed on sentiment. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Market is slow. Buyers are still waiting for 29,000 rupees levels," said Haresh Acharya, head of bullion desk at Ahmedabad-based Parker Bullion.

* The wedding season has begun in India and will continue till early June. Akshay Tritiya, the second biggest gold buying festival after Dhanteras, also falls in this period.

* India has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.

* On April 2, Finance Minister P. Chidambaram suggested the government was unlikely to raise the import tax on gold further to avoid gold smuggling.

* Silver for May delivery on the MCX was 0.29 percent lower at 51,525 rupees per kilogram.

READ MORE ON  Gold futures

ADS BY GOOGLE

video of the day

Indian economy to see real turnaround in 6 mths: Madhu Kela

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.