Muthoot Exim to foray in gold recycling business

The company aims to recycle two tonne gold by 2017-2018.

Post By : IJ News Service On 02 January 2016 11:03 AM
In the middle of a fragile trend overseas, gold prices fell 0.92 per cent to Rs 25,267 per 10 gm in futures trade today as speculators indulged in trimming positions. At the Multi Commodity Exchange, gold for delivery in far-month October contracts eased by Rs 235, or 0.92 per cent, to Rs 25,267 per 10 gm in business turnover of 134 lots. Similarly, the metal for delivery in August month contracts shed Rs 217, or 0.86 per cent, to Rs 25,158 per 10 gm in 2,967 lots. Analysts said a weak trend in the overseas markets, where gold dipped below USD 1,200 an ounce to trade at nearly three-year low on constant worries over the US Federal Reserve's plan to wind down its monetary stimulus, put pressure on the gold prices at futures trade here. Globally, gold fell 0.60 per cent, to USD 1,191.79 an ounce after touching a year low of USD 1,180.71 in Singapore today. Chinese traders have stopped buying gold, while demand in India is muted, contributing to the 30% drop in gold values this year.%% The plunge in gold to an almost three-year low has failed to lure shoppers in India, the world’s largest consumer, as state curbs and a decline in the rupee to a record bolster the costs of imported metal. Inbound shipments may tumble 52 percent to 150 metric tons in the three months starting July 1 from a quarter earlier as buyers keep away from stores, said, Bachhraj Bamalwa, a Director at the All India Gems & Jewellery Trade Federation. Prices in India have fallen 14 percent this quarter, less than the 25 percent drop in London after the rupee lost 8.9 percent against the dollar to an all-time low. Gold is heading for its worst year since 1981 after some investors lost faith in it as a store of value amid speculation the U.S. Federal Reserve will curb debt-buying. Demand in India has fallen after the government increased taxes on imports twice this year to try and rein in a record current-account deficit. The central bank has curbed overseas purchases on a consignment basis and limited imports for local consumption against cash only, prompting retailers to halt sales of coins and bars.%%

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