Gold futures fall over 2.5 percent after rupee recovers

Last Updated: Wed, Sep 04, 2013 11:51 hrs

Gold futures fell more than 2.5 percent on Wednesday, as a rebounding rupee from near-record lows weighed on sentiment.

At 1626 IST, the actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 2.64 percent lower at 33,530 rupees per 10 grams. It was down 4.7 percent from the record high of 35,074 rupees hit on August 28.

The rupee, which rebounded from its near-record low, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Overseas gold eased on profit-taking and technical selling, pulling back from sharp gains made in the previous session as U.S. President Barack Obama won support from key Congressmen for a limited strike against Syria.

In the physical market, gold traders awaited for imports to restart after a five-week halt in shipments, which drove premiums higher.

"I've forwarded this circular to our compliance officer. There is clarity on how do we import," said a dealer with a private bank importing bullion.

The bank is yet to take a call on when to restart imports, the dealer added.

Silver for September delivery on the MCX was 3.85 percent lower at 55,100 rupees per kg.

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