Gold futures ease; better physical supplies seen

Last Updated: Fri, Sep 20, 2013 12:31 hrs

Indian gold futures eased on Friday, in line with global prices, while in the physical market, the resolution of an import stalemate is seen improving supplies ahead of peak season demand.

At 5:05 pm IST, the actively traded gold for October delivery on the Multi-Commodity Exchange (MCX) was 0.6 percent lower at 30,345 rupees per 10 grams.

Gold imports will resume immediately after a two-month gap as the government and banks sorted out how new rules on overseas purchases should work at a high-level meeting, a trade ministry source told reporters. "This is a big relief and should help improve supplies, if action follows words," said a dealer with a state-run bank.

Overseas spot gold was 0.6 percent lower at $1,355.86 an ounce, retreating from Thursday's one-week high of $1,374.54.

The partially convertible rupee was trading at 61.96/97 per dollar, weaker than its close of 61.77/78 on Thursday, making the dollar-quoted asset more expensive.

Traders expect domestic buying to pick up from mid-October because of festive and wedding season demand.

"Retail sales have not started. They will begin in 15-20 days," said Harshad Ajmera, the proprietor of JJ Gold House.

Silver for December delivery on the MCX was down 1.63 percent at 50,903 rupees per kg.

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