Indian gold importers await US jobs report for price direction

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Reuters: Mumbai, Mar 08 2013, 16:09 IST
Gold importers in India were unwilling to book deals on Friday, and awaited the U.S. jobs report for direction on the price of the yellow metal as support from firm overseas markets outweighed a stronger rupee at home.

* Local demand for gold is expected to pick up from April, when weddings and festivals get underway, and will continue till June.

* India, the world's biggest buyer of gold, raised the import duty on the yellow metal to 6 percent from 4 percent earlier, from Jan. 21.

* At 0931 GMT, the actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.06 percent higher at 29,405 rupees per 10 grams.

* The rupee, which traded stronger on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Overseas gold hovered around $1,580 an ounce on Friday, ahead of the release of a key U.S. job market report.

* "A few customers are booking good quantity due to rupee appreciation, but mad rush is not there... all are waiting for U.S. jobs report," said a dealer with a state-run bullion dealing bank.

* Since the Federal Reserve has pegged its monetary policy to the unemployment rate, a surprise in jobs data would fuel speculation over the Fed's next

... contd.

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