Gold prices ease from one-week high

Gold prices ease from one-week high

Last Updated: Thu, Mar 14, 2013 10:07 hrs
Gold biscuits are displayed inside a jewellery showroom in Hyderabad

Gold futures eased from their highest level in a week on Thursday weighed by a slightly firmer rupee, but importers were not willing to place deals, waiting for more fall in prices.

India has been trying to curb imports of gold, which has been called a dead investment by the federal government, to put a lid on record high current account deficit by raising import duty by 50 percent to 6 percent in January.

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.41 percent lower at 29,367 rupees per 10 grams, easing from a high of 29,594 rupees hit on Wednesday.

The rupee, which traded stronger on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas market, gold steadied below $1,590 an ounce on Thursday after sliding in the previous session when an upbeat U.S. retail sales strengthened the outlook for the world's top economy and dampened the bullion's safe-haven appeal.

"There are hardly any deals happening in the market... there is hardly any demand," said Mayank Khemka, managing director of Khemka Group, a wholesaler in New Delhi.

Weddings and festivals will start next month and continue until early June.

Silver for May delivery on the MCX was 0.41 percent lower at 54,532 rupees per kg.

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