Indian gold futures stay near 1-week low

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Gold futures in India stayed near their lowest level in a week on Thursday weighed by global leads, though a weaker rupee kept the downside in prices limited. Reuters Gold futures in India stayed near their lowest level in a week on Thursday weighed by global leads, though a weaker rupee kept the downside in prices limited. Reuters
SummaryGold futures in India stayed near their lowest level in a week on Thursday weighed by global leads.

Gold futures in India stayed near their lowest level in a week on Thursday weighed by global leads, though a weaker rupee kept the downside in prices limited.

The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.11 percent lower at 28,988 rupees per 10 grams at 1128 GMT, after hitting a low of 28,865 rupees in the previous session, a level last seen on Jan. 10.

Silver for March delivery on the MCX was 0.75 percent lower at 44,448 rupees per kg.

The rupee, which weakened on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Global gold edged lower, as a rally in equity markets and increasing optimism over global economic growth dented its appeal as an alternative investment and made it vulnerable to further losses.

In the physical market, jewellers were battling to get stocks to meet demand for the yellow metal post a good harvest season amid steady premiums.

"Premiums are steady at $120 (an ounce) and buying is very slow," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.

Indian gold imports may have fallen 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes in 2014, if new import rules are maintained.

To curb a rising trade gap, the Indian government slapped a record import duty of 10 percent and tied imports for domestic consumption with exports.

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