Gold futures trade in narrow range

Gold futures trade in narrow range

Last Updated: Fri, Mar 22, 2013 10:10 hrs
Gold jewellery is displayed at a jewellery shop in Kolkata

Gold futures in India were stuck in a tight range, still near the highest level in three weeks, in line with global markets.

India, the world's biggest buyer of gold, has been trying to curb the imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.

"Liquidity is tight in the market due to year-end and so there is no demand. Demand might drop if prices top 30,200 rupees," said Ketan Shroff, a director with Penta Gold, a wholesaler in Mumbai.

At 3:21 p.m., the most-actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was lower by 51 rupees at 29,776 rupees per 10 grams, after trading in a range of 29,613-29,889 rupees since Monday.

U.S. gold traded nearly flat at $1,612.40, on course for a 1.2 percent weekly gain.

A weaker rupee kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver for May delivery on the MCX was 0.51 percent lower at 54,784 rupees per kg.

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