Gold prices fall 1.5 percent in India, near 1-month lows

Last Updated: Thu, May 16, 2013 10:19 hrs

Indian gold futures fell 1.5 percent on Thursday, extending losses for a second straight session, to hit their lowest level in nearly a month in line with global markets.

The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 400 rupees lower at 25,910 rupees per 10 grams at 3:36 p.m., after hitting a low of 25,898 rupees, a level last seen on April 20.

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

In the physical market, wholesalers tried to clear their old stocks, with a huge premium, after the central bank banned imports through consignment basis.

"After the RBI notification, we have stopped importing on consignment basis. We are trying to explore new ways to import, like on loan basis and unfixed basis," said a dealer with a private bank in Mumbai.

Premiums charged on spot prices of the yellow metal were at 750-1,200 rupees per 10 grams, as against 500-600 rupees last week.

Elsewhere, premiums for gold bars rallied to all-time highs in Hong Kong and Singapore on supply constraints.

Silver for July delivery on the MCX was 898 rupees lower at 42,416 rupees per kilogram.

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