Gold eases from three-week high, importers seek more
Mar 20 2013 , Mumbai
India, the world's biggest buyer of gold, has been trying to curb the imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.
"There is no business at all because of financial year-end, due to liquidity constraints," said Haresh Acharya, head of bullion desk, Parker Bullion in Ahmedabad.
At 4:00 p.m., the actively traded gold for immediate delivery was 0.32 percent lower at 29,763 rupees per 10 grams, after hitting a high of 29,889 rupees in the previous session, a level last seen on March 1.
However, in the overseas market, gold held steady near a three-week high as Cyprus' rejection of bailout terms rekindled worries about the stability of the euro zone, boosting bullion's safe-haven appeal.
The rupee, which traded almost flat, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Silver for May delivery on the MCX was 0.22 percent lower at 54,589 rupees per kilogram.
The following were the prices of gold and silver in rupees as of 1.15 p.m. local time in the spot market, quoted by HDFC Bank: