Gold price falls from two-month high

Reuters Posted online: Thursday, Jan 30, 2014 at 0000 hrs
Mumbai : Indian gold futures fell more than 0.5 percent on Thursday, retreating from two-month highs hit earlier in the week, weighed down by weak global markets, though a weaker rupee limited the downside.

At 1215 GMT, the most-active gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.75 percent lower at 28,838 rupees per 10 grams, falling from a high of 29,849 rupees hit earlier in the week, a level last seen on Nov. 20, 2013.

Silver contract for March delivery was 1.38 percent lower at 44,596 rupees per kg on the MCX.

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

However, premiums stayed steady at $80 an ounce on London prices, amid steady demand.

"There is not heavy demand as of now ... Gold is still available at a premium due to import restrictions," said Haresh Acharya, head of bullion desk, Parker Bullion.

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, a top trade body official said.