Gold futures trade higher

Last Updated: Fri, Nov 29, 2013 11:06 hrs

Gold futures extended gains on Friday helped by global markets and a weaker rupee at home, though high premiums in the domestic market due to lack of stocks kept physical buyers on the sidelines.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.17 percent higher at 30,211 rupees per 10 grams at 1019 GMT.

Silver for December delivery on the MCX was 0.41 percent higher at 44,310 rupees per kg.

"Demand is very low, and smuggled gold is coming in to meet the requirement.. Legal gold is not available," said Ram Mohan Kamath, secretary, Calicut Bullion Dealers Association.

To ease its trade deficit, India has made it more expensive to bring in gold, the biggest non-essential import item, by setting the import duty at a record high 10 percent.

It has also tied the quantity of imports to exports, making it necessary for importing agencies to fulfill export orders before sending any bullion for local consumption.

The World Gold Council (WGC) cut its forecast for Indian gold demand earlier this month, predicting that the country could also lose its place as the world's biggest consumer of bullion to China.

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