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Jul 25, 2012, 03.05 PM IST
MARKETS-INDIA-GOLD:Gold traders stay on sidelines as prices hit 2-week high
MUMBAI (Reuters) - Physical traders of gold in India stayed on the sidelines after gold prices extended gains for a third straight day to hit their highest level in more than two weeks.
* The most-active gold for August delivery on the Multi Commodity Exchange (MCX) rose to as much as 29,729 rupees per 10 grams, the highest level since July 6, before trading 0.47 percent higher at 29,708 rupees at 0807 GMT.
* The contract gained 1 percent in the previous two sessions.
* A weaker rupee and firm overseas markets helped sentiment.
* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Global gold inched up, extending gains into a second session after poor economic data from both sides of the Atlantic helped raise hopes for further monetary stimulus measures.
* Imports of gold into India, the world's biggest buyer in 2011, have been subdued this year, and are expected to fall for the rest of the year. A below-normal monsoon is likely to further threaten gold demand from rural areas, which consume 60 percent of the yellow metal.
* "Demand is still poor... there could be a 50 percent drop in imports from last year," said Mayank Khemka, managing director with Khemka Group, a wholesaler based in New Delhi.
* Festivals will start in early August and continue till November. Weddings also take place during this period.
* Silver for September delivery on the MCX was 0.25 percent higher at 52,961 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Prateek Chatterjee)
May 22 2013, 13:11
- in MARKET OUTLOOK
May 22 2013, 10:44
- in Economy