Gold traders wary as prices at 2-month high

Shares of Industrial Finance Corporation of India (IFCI) plunged on Friday after the government exercised the option to convert Rs 923 crore worth of debentures into equity with immediate effect. Atul Kumar Rai, MD and CEO, IFCI, told NDTV Profit that the

Gold traders wary as prices at 2-month high

Indian gold traders refrained from taking fresh positions on Wednesday as the yellow metal rose for a sixth straight session to hit its highest level in nearly two months.

* At 0854 GMT, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.32 per cent higher at Rs 30,415, having earlier struck a high of Rs 30,440, a level last seen on June 26.

* Global gold gained slightly to hover near a 3-1/2 month high hit in the previous session as investors remained hopeful the European Central Bank would soon take action to contain the region's debt crisis.

 * The festival season is underway in India, the world's biggest buyer of bullion. Gold imports have already halved so far this year and a likely drought could further dent rural demand.

* "Currently sales are lower... there could be some demand in coming months," said S.L. Jain, president, Chandani Chowk Jewellers Association in New Delhi.

* Gold imports during the September-December peak demand season could fall by 40 per cent on year to 200 tonnes, the head of a trade body said.

* Rural areas, which depend on monsoon rains for yields and income, contribute to about 60 per cent of the country's demand.

* Silver also moved higher tracking the yellow metal.

* Silver for September delivery was 0.38 per cent higher at Rs 55,451 per kg.

Copyright @Thomson Reuters 2012