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Feb 24, 2012, 03.19 PM IST | Source: Reuters

Gold traders in India stay away from new deals

Gold traders in India, the world's biggest buyer of bullion, were reluctant to enter the market on Friday as the prices remained elevated, though off their 10 week highs.

Gold traders in India stay away from new deals

Gold traders in India, the world's biggest buyer of bullion, were reluctant to enter the market on Friday as the prices remained elevated, though off their 10 week highs.

* The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was at Rs 28,785 per 10 grams, 0.44% lower from the 10-week high of Rs 28,944 hit in the previous session.

* "The market is still dull as prices are holding well above Rs 28,000 level. Gold prices have moved up USD 40 (an ounce) in just sessions, so people will take time to digest these prices," said Pinakin Vyas, assistant vice-president with gold importing IndusInd Bank.

* Indian gold volumes have eased this week from the above-average physical demand seen for most of the year to date, UBS said in its daily note to clients. UBS is a major supplier of gold to India.

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

* Indian gold imports in 2012 could fall by a fifth for the first time in three years to 770 tonnes as investors chase better accruals from equity markets and other financial instruments.

* Silver also edged higher following prices of copper.

* Silver for March delivery on the MCX was 0.30% lower at Rs 58,853 per kg.

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