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12 March, 2013

Gold edges higher from 8-month low - The Economic Times

Gold edges higher from 8-month low - The Economic Times

Gold edges higher from 8-month low

Gold futures edged higher on Tuesday recovering partly from their last week's lowest level in eight months, driving away importers amid liquidity crunch ahead of the financial year-end.

The government has been trying to curb imports of gold, which has been called a dead investment by the federal government, to put a lid on record high current account deficit by hiking import duty by 50 percent to 6 percent in January.

At 0640 GMT, the actively traded gold contract for April delivery on the Multi Commodity Exchange (MCX) was 0.18 percent higher at 29,373 rupees ($540) per 10 grams, helped by gains in overseas markets. The contract hit a low of 29,111 rupees last week, a level last seen on July 20.

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

Overseas gold inched up on physical buying in Asia, but it struggled to break above a recent range as improved economic outlook and a stock market rally capped sentiment for the precious metal.

Silver contract for May delivery on the MCX was 0.15 percent higher at 54,677 rupees per kg.

Source : The Economic Times

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