RTRS:Indian gold traders wary as prices at 2-month high
MUMBAI, Aug 22 (Reuters) - 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
percent higher at 30,415 rupees, having earlier struck a high of
30,440 rupees, 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 percent 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 percent of the country's demand.
* Silver also moved higher tracking the yellow metal.
* Silver for September delivery was 0.38 percent
higher at 55,451 rupees per kg.
* Following were the prices in rupees at 1:15 p.m., quoted
by Corporation Bank in the spot market :
Wednesday Tuesday
=============================================
Gold .999/10 grams 30,563 30,317
Silver .999/kg 55,688 54,866
At 2:26 p.m., following were the prices in rupees on the
Multi Commodity Exchange of India Ltd <0#MAU:>:
Contract Current price Net change
=============================================
Oct gold 30,422 +104
Sept silver 55,536 +296
