Gold tops Rs 30000/10 grams again; losing sheen

As growth slows and expectations of rate cuts rise, Aditya Puri, managing director of HDFC Bank, says that while some room for rate easing has opened up, any dramatic reduction in rates is unlikely.

Inside an IKEA store in Stockholm, Sweden
Inside an IKEA store in Stockholm, Sweden

Gold prices in India edged higher to reclaim the keenly-watched 30,000-rupees mark on Tuesday owing to a slight weakness in the rupee, driving away physical traders in a seasonally dull demand period.

* The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.51 per cent higher at Rs 30,072 per 10 grams, after rising as much as Rs 30,119.

* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. The partially convertible rupee was a tad weaker at 55.72 rupees to the dollar than its 55.66/67 close on Monday.

* "Retail sales are poor... consumers are not accepting this price," said Harshad Ajmera, proprietor of J.J. Gold House in Kolkata in Hindi.

* Gold demand in India is likely to remain subdued in the coming months due to the onset of monsoon rains and a sluggish wedding and festival season.

* Silver also edged higher tracking the yellow metal.

* Silver for July delivery on the MCX was 0.67 per cent higher at Rs 54,200 per kg.

Copyright @Thomson Reuters 2012