No takers for gold in India as prices soar to three week high

No takers for gold in India as prices soar to three week high

Gold imports into India fell about 81 percent after the government raised import duty.

Gold traders in India moved to the sidelines as prices consolidated in the vicinity of their highest level in three weeks. Gold imports into India,the world’s biggest buyer of the metal,fell about 81 percent in June from the previous month after the government raised import duty and stopped consignment imports.

“July sales have been dull compared with previous months,” said Lokesh Kumar Agarwal,chairman of Brijwasi Bullions and Jewellers in the northern city of Lucknow. He expect the company’s sales to halve in July compared with June. At 0854 GMT,the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.27 percent higher at 25,640 rupees per 10 grams,helped by a weaker rupee. The contract struck a high of 26,925 rupees on Monday,the highest level since June 24. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. Weak leads from overseas markets kept the upside in prices limited.

Silver for September delivery on the MCX was 0.15 percent lower at 40,959 rupees per kg. The following were the prices of gold and silver in rupees as of 1315 local time in the spot market,quoted by HDFC Bank:

Wednesday Tuesday

Gold .999/10 grams 26,930 26,910

Silver .999/kg 42,970 42,890