Monday April 25, 2011

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By Sam Devraj  ( Assistant Editor )

Soaring prices: Gold bangles at a store in Noida

INDIAN gold and silver traders bought the metal at record prices to stock for the upcoming Akshaya Tritya, a gold buying festival, and the wedding season expected to extend till May, providing underlying support to world prices, dealers said.The most-traded gold for June delivery on the Multi Commodity Exchange (MCX) was trading 0.02 per cent higher at Rs22,125 ($497.18/£300.81)5 per 10 grams, after hitting a record of Rs22,172 ($498.20301.42/£) rupees earlier in the day.Silver prices also surged, extending the previous session’s gains, to hit another record. The white metal struck a new record of Rs73,600 ($1653.74/£100.75) per kg on Monday afternoon.“I booked for 100 kg from morning at $1,538.5 (£930.7) (an ounce). Both my Delhi and Mumbai centres are active,” said a dealer with a state-run bank in Mumbai dealing in bullion. “I have advance orders at $1,517 (£917.6).”Gold traders also bought dollars in the foreign exchange market, resulting in a drop in the local currency.India, the world’s largest consumer of the yellow metal, celebrates a gold-buying festival on May 6 and will be followed by weddings expected to pump up demand.India had imported 900 tonnes of gold last year spurred by wedding and festival purchases.

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