Gold eases from 1-week high; some banks re-start imports

Last Updated: Thu, Sep 26, 2013 10:24 hrs

Mumbai: Gold futures eased slightly from their highest level in a week in line with overseas market, and on a firm rupee, while some banks re-started imports after a gap of two months.

At 0921 GMT, the most-actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.15 percent lower at 30,170 rupees per 10 grams, after hitting a high of 30,290 rupees on Wednesday, a level last seen on September 20.

"They've cleared consignments of banks at Kolkata airport, and most banks are waiting for them to clear lots in Mumbai," said a dealer with a private importing bank in Mumbai.

Some banks, which are primary dealers of bullion, re-started imports for exports, after the customs department gave a green signal to some lots.

"Our shipment (for exports) just landed today in Mumbai. It is yet to be cleared by the custom. For other locations, where we have domestic business, we are yet to figure out how to deal with the 80/20 rule," said a dealer with a state-run bank in Mumbai.

Imports had virtually stopped after the so called 80/20 principle, which tied exports with domestic consumption, creating confusion among government officials, and prompting the commerce ministry to call a high level meeting to break the dead lock.

Restart of imports could be timely just ahead of the peak Christmas season for exporters, and the wedding and festival season for local dealers, when demand for the metal goes up.

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