August 20, 2013 / 10:08 AM / 4 years ago

Gold futures ease from eight-month high

2 Min Read

A customer holds a gold necklace inside a jewellery showroom in Mumbai April 16, 2013.Danish Siddiqui/Files

MUMBAI (Reuters) - Gold futures eased from their highest level in eight months on Tuesday on profit-taking as the rupee came off its early low and overseas markets fell.

* At 2:47 p.m., the actively traded gold contract for October delivery on the Multi Commodity Exchange (MCX) was 1.83 percent lower at 30,595 rupees per 10 grams, after hitting a high of 31,278 rupees in the last session, the level last seen on December 18.

* Technical indicators show highly overbought conditions, leading to profit-booking, said Gnanasekar Thiagarajan, director with Commtrendz Research.

* Thiagarajan said the outlook was negative for gold prices on a weekly basis, with the U.S. Fed minutes and subsequent news of tapering off likely to dent gold prices.

* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Silver contract for September delivery on the MCX was 2.4 percent lower at 49,988 rupees per kg.

* Overseas silver slid nearly 4 percent, falling a second straight session after its biggest rally in five years, as worries over the U.S. stimulus outlook and technical selling dragged it lower and gold followed.

* In the physical market, gold traders awaited imports to re-start ahead of the key festivals and weddings next month.

* A resumption of imports would ease tight domestic supply and prices ahead of a festival and wedding season that kicks off next month. Indian imports would also support benchmark international gold prices.

Reporting by Siddesh Mayenkar; Editing by Anand Basu

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