Indian gold and silver futures traded slightly lower on Monday, still consolidating in recent price ranges, with the physical market witnessing subdued demand in a seasonally slow period after a series of government measures to contain imports.
At 3:56 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.32 percent lower at 27,790 rupees per 10 grams. It has moved in a range of 26,961-28,288 rupees since the start of the month.
Silver for July delivery on the MCX was 0.53 percent lower at 43,601 rupees per kilogram.
"Demand is poor at the moment as the rupee is weak... People had stocked so much in April and May," said Satish Bansal, managing director, MD Overseas, a gold importer in New Delhi.
A weaker rupee makes the dollar-quoted yellow metal expensive. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
The festival and wedding season has ended and will re-start in August.
Net gold imports into India, the world's biggest buyer of bullion, have fallen from an average of $135 million in the first half of May to $36 million in the second half of the month, the finance minister said.
The government does not need to act as of now to further moderate gold imports as the recent steps have already had a considerable impact, a government official said recently.