Gold futures hover near two-month high

Last Updated: Thu, Jun 13, 2013 10:36 hrs

Gold futures edged up on Thursday, hovering near their highest level in more than two months, following weakness in the rupee.

At 3:43 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.17 percent higher at 28,000 rupees per 10 grams.

It hit a high of 28,186 rupees earlier in the session, not too far from a two-month high of 28,288 rupees touched on April 13.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

A weaker rupee, which made the yellow metal expensive, also kept physical dealers on the sidelines, weeks after the federal government hiked the import duty to 8 percent, and restricted consignment imports.

"Market is very slow as there's not much demand," said Ketan Shroff, director with Penta Gold, a wholesaler in Mumbai.

Gold imports into India, the world's biggest buyer of bullion, have fallen from an average of $135 million in the first half of May to $36 million the second half of the month, the finance minister said on Wednesday.

The Indian government does not need to act as of now to further moderate gold imports as the recent steps have already had a considerable impact, a government official said on Wednesday.

Silver for July delivery on the MCX was 0.39 percent higher at 43,718 rupees per kilogram.

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