Bullion trading in the first quarter of FY12-13

MUMBAI: Bullion trading in the first quarter of FY12-13 up to June 15th were down by 12%. The sharp depreciation in rupee has reduced participation on the futures market as gold contracts became costlier during the period April 1 - June 15, 2012.

The Cumulative value of trade in bullion during the said period stood at Rs 16,88,772 crore compared to Rs 19,22,226 crore during the same period previous year.

When overseas gold falls, gold sold in domestic market normally falls in line. However if the rupee weakens the falls in the domestic market get cushioned.

This is because India imports almost the entire requirement of an average 700-800 tones of gold each year.