RTRS:Indian gold traders stay away as prices hit 1-month high
MUMBAI, July 31 (Reuters) - Indian gold traders waited for
bargains ahead of festivals next month as prices extended gains
for another session, nearing the elusive 30,000 rupees mark.
* The most-active gold contract for August delivery
on the Multi Commodity Exchange (MCX) was 0.30 percent up at
29,878 rupees per 10 grams at 0940 GMT, after hitting a high of
29,930 rupees, its highest since June 28.
* Gold imports declined in the first half of the year, and
industry officials expect the trend to continue.
* "People are not happy with the sudden jump in prices,
business is not that great... there could be a little buying d ue
to festivals from next month," said Harshad Ajmera, proprietor
of JJ Gold House in Kolkata.
* The festivals season starts in August in India, the
world's biggest buyer in 2011, and continue till November.
* Traders are also eyeing the monsoon forecast for the
second half of the June-September season, vital to gold demand
in rural areas.
* Monsoon rains, which have been below normal so far, are
vital to the farm economy in rural areas that account for 60
percent of gold demand.
* Silver also edged higher, following the yellow metal.
* Silver for September delivery on the MCX was 0.69
percent higher at 54,197 rupees per kg.
* Following were the prices in rupees at 1:15 p.m., quoted
by HDFC Bank in the spot market :
Tuesday Monday
=============================================
Gold .999/10 grams 30,380 30,183
Silver .999/kg 55,490 54,337
At 2:40 pm, following were the prices in rupees on the
Multi Commodity Exchange of India Ltd <0#MAU:>:
Contract Current price Net change
=============================================
Aug gold 29,892 +104
Sept silver 54,280 +453
