Gold Extends Gains, Traders Stay Away.

 India gold futures extended gains on Monday afternoon to hit their highest level in a week, following overseas markets, though a strong rupee kept the upside in prices limited, and traders were unwilling to book high-priced stocks, dealers said.

Gold rates

At 2:25 p.m., the most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.60 percent higher at 20,973 rupees per 10 grams, after hitting a high of 20,996 rupees, a level last seen on March 14.

"Secondary gold is available in the market at lower prices, they are available at a discount of 200 rupees (per 10 grams)," said a dealer with a state-rbun bullion importing bank in Mumbai.

India's biggest tax evader

The Indian rupee was stronger tracking the euro's gains against the dollar, but was expected to remain rangebound with high oil prices preventing a sharper rise, traders said.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

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.


Source : sify.com