India gold hits record; traders stay away

-- Source of News : Zee News --

Mumbai: India gold struck another record high on Monday following firm overseas markets and a weaker rupee, driving traders away from physical market awaiting for bargains, dealers said.

"There are not many deals, even rupee is not supportive," said a dealer with a state-run bullion importing bank.

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.54 percent higher at 21,211 rupees per 10 grams at 2:16 p.m., after hitting a record of 21,247 rupees.

The rupee fell, tracking weak local shares and high global crude oil prices, while domestic political worries also weighed on sentiment. A weaker rupee makes the dollar-denominated asset expensive.

The high-demand wedding season is underway in India, the world's largest consumer of the yellow metal.

India's gold imports in Oct-Dec. rose 30 percent to 265 tonnes, and an increase in import duty is likely in the upcoming budget, the World Gold Council said on Feb. 17.

Read more at : http://biz.zeenews.com/news/news_content.aspx?newscatid=1&newsid=21798

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