Gold futures ease on weak global cues, rupee gains

Source : REUTERS
Last Updated: Wed, Sep 18, 2013 11:36 hrs

Gold futures eased on Wednesday, a day after gaining more than 1 percent, tracking weak global cues and gains in the local currency.

At 1456 IST, the actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.93 percent lower at 29,446 rupees per 10 grams from its previous close.

Overseas gold fell more than 1 percent to trade below $1,300 an ounce, with investors expecting the U.S. Federal Reserve to announce a reduction in its bullion-friendly stimulus measures later on Wednesday.

The rupee notched up gains and was trading at 63.15/16 versus its Tuesday's close of 63.37/38, tracking losses in the dollar versus most other Asian currencies, making the dollar-quoted asset less expensive.

Domestic buying remained subdued despite the approaching peak festival and wedding season.

"We expect the demand to pick up around mid-October," said a gold dealer with a private bank, who did not wish to be identified.

India increased the import duty on gold jewellery to 15 percent from 10 percent on Tuesday, in a move aimed more at protecting the domestic jewellery industry rather than stemming overseas purchases to narrow its current account deficit.

"Gold jewellery is not even 5 percent of the country's total imports, so we don't see any major impact," the dealer said.

Silver for December delivery on the MCX was 0.79 percent lower at 49,017 rupees per kg.

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