Gold steady near eight-month high on weak rupee

Last Updated: Wed, Aug 21, 2013 09:25 hrs

Mumbai: Gold futures in India traded in the vicinity of their highest level in eight months on Wednesday due to a weaker rupee, while demand remained subdued ahead of the resumption of imports.

The actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.15 percent lower at 30,765 rupees per 10 gram. It touched a high of 31,225 rupees intraday, near an eight-month high hit on August 19.

The rupee, which hit a record low again on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas market, gold traders awaited more clarity from the U.S. Federal Reserve on whether it would begin curbing its commodities-friendly economic stimulus from next month.

"India remains largely absent in the physical market amid tighter regulations and a weak currency," UBS said in a report to its clients.

Indian traders said they will start importing gold again over the next week or so after the central bank clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a standstill at the end of July.

The most-active silver for September delivery on the MCX was 0.33 percent lower at 50,291 rupees per kg.

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