Gold futures inch up as rupee weakens

Last Updated: Thu, Dec 26, 2013 11:11 hrs

Gold futures rose slightly on Thursday as the rupee depreciated against the dollar. The most-active gold for February delivery was up 0.27 percent at 28,529 rupees per 10 gram at 3:57 p.m. on the Multi Commodity Exchange.

Silver for March delivery was up 0.37 percent at 44,150 rupees per kg.

"Dip buying and choppiness in the U.S. dollar has lent some support to gold price," Kotak Commodity Services analysts wrote in a note.

International gold was nearly flat.

The partially convertible rupee, which plays a key role in determining the landed cost of the dollar-quoted yellow metal, fell tracking losses in other Asian currencies.

Gold imports may fall 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 next year if new import rules are maintained, a top trade body official said.

To curb a rising trade gap, the Indian government slapped a record import duty of 10 percent earlier this year and tied imports for domestic consumption with exports.

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