Gold eases from one-week high

Last Updated: Wed, Jan 15, 2014 11:48 hrs

Gold futures fell more than half a percent on Wednesday, easing from their highest level in a more than a week, weighed down by overseas markets, while in the physical market jewellers struggled for supplies to meet post-harvest demand.

The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.50 percent lower at 28,950 rupees per 10 grams at 4.49 p.m., down from the previous day's high of 29,314 rupees, a level last seen on January 6.

Silver for March delivery on the MCX was 0.65 percent lower at 44,650 rupees per kg.

Global gold retreated for a second session, dropping back from a one-month high, as strong U.S. retail sales and global economic growth prospects prompted a rally in stock markets and dented the metal's appeal as a safe haven.

"There is no gold supply available in the market. Even the government-run agency is charging about 10 percent premium," said Harshad Ajmera, proprietor of JJ Gold House in the eastern city of Kolkata.

Premiums were quoted at $110 an ounce as against $130 last week, Ajmera said.

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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