Gold futures at one-week low on overseas cues

MUMBAI Thu Apr 11, 2013 5:40pm IST

Customers look at gold bangles inside a jewellery shop in Hyderabad September 8, 2009. REUTERS/Krishnendu Halder/Files

Customers look at gold bangles inside a jewellery shop in Hyderabad September 8, 2009.

Credit: Reuters/Krishnendu Halder/Files

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MUMBAI (Reuters) - Gold fell to its lowest level in a week on follow-through selling on Thursday, a day after Cyprus was forced to sell most of its gold reserves, though the physical market was quiet as banks, the primary dealers of bullion, were shut for a holiday.

* At 5:39 p.m., the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was down 110 rupees at 29,122 rupees per 10 grams, after hitting a low of 29,081 rupees, a level last seen on April 5, following weakness in the global markets.

* The contract had shed more than 1 percent on Wednesday, after news of the sale of gold reserves by debt-laden Cyprus.

* U.S. gold was 0.19 percent lower at $1,555.8 an ounce due to uncertainty over the Federal Reserve's stimulus programme.

* "Market is in a holiday mood, everyone is buying according to requirements. We see them come at 28,700 rupees," said Ketan Shroff, director with Mumbai-based Penta Gold.

* Banks were shut in India, the world's biggest buyer of the metal, for a local festival that marks the start of the auspicious period.

* The wedding season has begun in India and will continue till early June. Akshay Tritiya, the second biggest gold buying festival after Dhanteras, will also take place during this period.

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

* Finance Minister P. Chidambaram suggested last week the government was unlikely to raise the import tax on gold further to avoid gold smuggling.

* Silver for May delivery on the MCX was 0.67 percent lower at 51,426 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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