August 19, 2013 / 9:45 AM / 4 years ago

Gold futures hit over seven-month high as rupee falls

Employees wait for customers inside a gold jewellery showroom in New Delhi August 13, 2013. REUTERS/Anindito Mukherjee

MUMBAI (Reuters) - Gold prices in India, the world’s biggest buyer of the metal, hit their highest level in more than seven months, helped by a rupee that weakened to a record low again.

* The actively traded gold contract for October delivery on the Multi Commodity Exchange (MCX) was 0.1 percent lower at 30,809 rupees per 10 grams, after hitting a high of 31,000 rupees earlier in the day, a level last seen on January 7.

* The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, looked poised for further losses, with a series of measures unveiled last week failing to stall its decline.

* Overseas gold hit fresh two-month highs, helped by weak U.S. data that increased the metal’s safe-haven appeal, and further inflows into the world’s biggest bullion-backed exchange traded fund (ETF).

* In the domestic market, demand remained subdued amid circular from the Reserve Bank of India clarifying a July order for imports, while premiums remained steady.

* “Demand is zero ... there could be demand after 15 days,” said Suresh Jain, director of Bombay Bullion Association.

* India turned the screw on gold buying again, banning imports of coins and medallions and making domestic buyers pay cash, after hiking bullion import duty to a record 10 percent.

* Silver for September delivery on the MCX was 0.05 percent lower at 50,635 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Anand Basu

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