Gold futures edge higher, helped by weak rupee

Gold futures edged higher on Friday evening, helped by a weaker rupee amid flat overseas markets.

 

At 1758 IST, the most-active gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.20 per cent higher at Rs 28,857 per 10 grams.

 

Silver for March delivery on the MCX was 0.48 per cent higher at Rs 44,680 per kg.

 

The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, weakened in trade on Friday. 

 

In the physical market, demand was lacklustre, even as jewellers struggled to get supplies in the peak wedding season.

 

"Import is going on, but in limited quantities... we imported a lot of 1.2 tonnes of gold this month," said an official with a state-run bullion importing trading firm in New Delhi.

 

Indian gold imports may fall 70 per cent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes next year if new import rules are maintained, a top trade body official.

 

To curb a rising trade gap, the government slapped a record import duty of 10 per cent, and tied imports for domestic consumption with exports.

 

Copyright @ Thomson Reuters 2013