Gold futures rallied on Thursday aligned with in global prices jumped 2 percent as bargain hunters emerged to take full advantage of the lowest prices.
At 17:50, the most active gold for delivery in February rose 1.43 percent to 28,824 rupees per 10 grams on MCX India Exchange.
While on MCX Silver prices jumped 2.74 percent to Rs 45,078 per kg in futures trading today.
International Gold rose to a high of $ 1227.75 an ounce as bargain hunters resurfaced after prices fell to a minimum of six months. It was down to U.S. $ 1,184.50 an ounce on Tuesday, its lowest level since June 28.
“Mixed U.S. economic (data) and firmness in other commodities has supported prices,” analysts at Kotak Commodity Services wrote in a note. “However, weighing on prices is firmness in the U.S. dollar amid the Fed’s decision to reduce stimulus.”
Partially convertible rupee, which plays a key role in the determination of landed cost of the dollar quoted metal, moved lower as a large petrochemical company bought dollars, traders said.
India gold imports may fall 70 percent in the fourth quarter of 2013 from 255 tonnes in the period last year and be expected to be half the usual levels of 500-550 tonnes next year if they keep the new import rules, an agency official said trade higher.
To curb a widening trade deficit, India slapped a record import duty of 10 percent on gold earlier this year and imports linked to domestic use and exports. Finance Minister, P. Chidambaram told the news channel CNBC TV18 on Monday “to restrict imports of gold is a good measure” and that India should look to extract gold in the country to reduce its dependence on imports.
Reported Source : Reuters India